SOLUTION: Business and finance. The cost of producing a number of items x is given by C=mx + b, in which b is the fixed cost and m is the varible cost (the cost of producing one more item).

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Question 86173: Business and finance. The cost of producing a number of items x is given by C=mx + b, in which b is the fixed cost and m is the varible cost (the cost of producing one more item).
a) if the fixed cost is $40 and the variable cost is $10, write the cost equation.
b) Graph the cost equation.
c) The revenue generated from the sale of x items is given by R= 50x. Graph the revenue equation on the same set of axes as the cost equation.
d) How many item must be produced for the revenue to equal the cost (the break-even point)?
The only thing that I figured out was a) C= 10x + 40
I will really apreaciate your help with this problem.

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
Business and finance. The cost of producing a number of items x is given by C=mx + b, in which b is the fixed cost and m is the varible cost (the cost of producing one more item).
a) if the fixed cost is $40 and the variable cost is $10, write the cost equation.
Cost = 10x + 40
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b) Graph the cost equation.
graph%28400%2C300%2C-5%2C5%2C-50%2C50%2C10x%2B40%29
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c) The revenue generated from the sale of x items is given by R= 50x. Graph the revenue equation on the same set of axes as the cost equation.
graph%28400%2C300%2C-5%2C5%2C-50%2C50%2C50x%2C10x%2B40%29
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d) How many items must be produced for the revenue to equal the cost (the break-even point)?
Cost = Revenue
10x+40 = 50x
40x=40
x=1 (one item must be produced to break even.
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Cheers,
Stan H.