Question 1142264
a company markets exercise dvds that sell for 24.95, including shipping and handling.
 The monthly fixed costs (advertising, rent, etc.) are $36,270 and the variable costs (materials, shipping, etc.) are $5.45 per dvd.
:
let x = no. of dvd's
A) find the cost equation and the revenue equation.
C(x) = 5.45x + 36270; and R(x) = 24.95x
:
b) how many dvds must be sold each month for the company to break even?
Revenue = Cost
24.95x = 5.45x + 36270
24.95x - 5.45x = 36270
19.50x = 36270
x = 36270/19.5
x = 1860 dvd's to break even
:
C) Graph the cost and revenue in the same coordinates system and show the break even point.
{{{ graph( 300, 200, -1000, 2500, -30000, 80000, 24.95x, 5.45x+36270 ) }}}
breakeven, x=1860, y=46407