Precalculus (6th Edition) Blitzer

Published by Pearson
ISBN 10: 0-13446-914-3
ISBN 13: 978-0-13446-914-0

Chapter 7 - Mid-Chapter Check Point - Page 853: 17


a) $C=400000+20x$ b) $R=100x$ c) $P= 80 x-400000$ d) $R(5000)=\$500000$

Work Step by Step

a) Here, the cost is the fixed cost. This means $\$ 400000$ plus $\$ 20$ per PDA. Hence, $C=400000+20x$ b) Revenue $=\$100$ per PDA Hence, $R=100x$ c) Profit = Revenue - Cost That is, $P= 100x- ( 400000+20x) =80 x-400000$ d) The break-even point occurs when profit is equal to zero -- that is, $R=C$ Thus, $P= 100x- ( 400000+20x) =80 x-400000$ $0=80 x-400000$ Hence, $x= 5000$ PDAs At this point, $R(5000)=\$500000$
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