## Precalculus (6th Edition) Blitzer

Published by Pearson

# 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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