Question 1014424
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a. Find the break-even quantity.
Break-even is when cost=revenue:
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C(x)=R(x)
13x+119=30x
119=17x
7=x
ANSWER a): . The break-even quantity is 7.
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b. Find the profit from 560 units.
P(x)=profit=revenue - cost; x=560
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P(x)=R(x)-C(x)
P(x)=30x-(13x+119)
P(x)=30x-13x-119
P(x)=17x-119
P(560)=17(560)-119
P(560)=9520-119
P(560)=9401
ANSWER b): . The profit on 560 units is $9401.
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c. Find the number of units that must be produced for a profit of $170.
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P(x)=R(x)-C(x)
P(x)=30x-(13x+119)
P(x)=17x-119
$170=17x-119
289=17x
17=x
ANSWER c): . Seventeen units must be produced for a profit of $170.
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