Question 1142374
the cost equation is y = 10 * x + F
y is the total cost.
F is the fixed cost.
x is the number of shirts produced and sold.


break-even point is (50,1000) means that the break-even point is when 50 shirts are produced and sold and the revenue is equal to the cost.


at the break-even point, y is equal to the revenue and is also equal to the cost.


at the break-even point, y is equal to 1000.


at the break-even point, the cost equation becomes 1000 = 10 * 50 + F.
solve for F to get F = 500.


the revenue equation is y = P * x.


y is the revenue.
P is the sale price per shirt.
x is the number of shirts sold.


at the break-even point, the revenue equation becomes 1000 = P * 50.
solve for P to get P = 20.


your three statements are:


A. The manufacturer will make a profit if he sells 50 T - shirts.
B. The fixed daily cost is R500.
C. The manufacturer sells the T - shirts at R25 per T - shirt.


A is false because the manufacturer will only make a profit if the manufacturer sells MORE THAN 50 shirts.
at 50 shirts, themanufacturer breaks even.
this means he neither takes a loss or a profit.
the loss is 0.
the profit is 0.


B is true.


C is false because the sale price per shirt is 20.