SOLUTION: It costs a company $3,500 to produce 3,000 pencils whereas it costs the company $1,500 a month even if they don't produce any pencils. If they sell the pencils for $0.75 and the co

Algebra ->  Test -> SOLUTION: It costs a company $3,500 to produce 3,000 pencils whereas it costs the company $1,500 a month even if they don't produce any pencils. If they sell the pencils for $0.75 and the co      Log On


   

Question 1131431: It costs a company $3,500 to produce 3,000 pencils whereas it costs the company $1,500 a month even if they don't produce any pencils. If they sell the pencils for $0.75 and the cost, revenue, and profit functions are known to be linear, determine how many pencils they must make in a month to break even.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +n+ = number of pencils they sell
Let +R+ = revenue
Let +C+ = cost
Let +P+ = profit
-------------------------
+P+=+R+-+C+
At the break even point, +P+=+0+
+R+-+C+=+0+
+R+=+C+
---------------------
+C+=+%28+3500+-+1500+%29%2F3000+%2B+1500+
+C+=+.667n+%2B+1500+
and
+R+=+.75n+
-----------------------
+R+=+C+
+.75n+=+.667n+%2B+1500+
+.08333n+=+1500+
+n+=+18000+
They must make 18,000 pencils/month
to break even