Question 96901: A publisher is planning on producing a new textbook
The fixed costs are $240000 and variable costs is $20 per book
The sale price is $35.00 ech
let x be the number of books
a. express the cost function as a linear function of x
b. express the revenue function as a linear function of x
c. graph the cost and revenue function found in a and b
d.what is the breakeven point
Please help am at a grid lock
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A publisher is planning on producing a new textbook
The fixed costs are $240000 and variable costs is $20 per book
The sale price is $35.00 ech
let x be the number of books
a. express the cost function as a linear function of
C(x) = 240,000 + 20x
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b. express the revenue function as a linear function of x
Revenue = (cost per unit)*(number of units)
R(x) = 35x
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c. graph the cost and revenue function found in a and b
Comment: the numbers are too large for this site.
You have two points: (0,24000) and (1,240020) for the Cost function.
Plot the points and draw a line thru them.
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Generate a couple of points for revenue and draw a line thru them
to see the Revenue function; for example (0,0) and (1,35)
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d.what is the breakeven point
Breakeven is when Revenue equals Cost
35x = 24000+20x
15x = 240000
x = 16000 books
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Cheers,
Stan H.
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