Posted by **Amanda** on Thursday, April 5, 2007 at 1:54pm.

The cost of producing a number of items x is given by

C = mx + b, in which b is the fixed cost and m is the variable cost (the cost of

producing one more item).

(a) If the fixed cost is $40 and the variable cost is $10, write the cost equation.

(b) Graph the cost equation.

c) The revenue generated from the sale of x items is given by R =50x. Graph the

revenue equation on the same set of axes as the cost equation.

(d) How many items must be produced for the revenue to equal the cost (the

break-even point)?

A) Did

x=0

y=40

x=10

y=140

B) i put the points in the graph

(0,40) (0,140)

C) now this is my problem

do i replace the x with

R=50*0 then solve and then

R=50*10 and then solve and put those points in also and draw a trend line if i am missing some thing i am not sure where

D) I have figured out how to solve this part I am hoping it will solve once i get the right equations in the graph please help

a)

If the fixed cost is $40 and the variable cost is $10 then the cost of:

1 item is $10 + $40 =$50

2 items is $20 + $40=$60

10 items is $100+ $40 = $140

20 items is $200 + $40=$240

x items is $10x + $40 = y (where y is the total cost)

"B) i put the points in the graph

(0,40) (0,140)" No, I think you can see that the second point is not right from a)

To plot R=50x (plot R on the y axis)

so if x=0, R=0

and if x=20, R=1000

If you plot the two lines, where they cross is the break even point.

Hope this helps.

if you don't want to find the break even point graphically (i wouldnt recommend using a graph becuase you MIGHT make a mistake on the graph, which would affect your answer to the break-even)..Personally, I hate graphs. I find equations simpler and more reliable.

Break-even is the point where Revenue=Cost

R=C

So, 50X=10X+40

Get all your X's on one side, so you have to throw the 10X over to the left

50X-10X=40

40X=40

So, X=1.

so x=1. and the cost is c=10x+40, and the revenue is r=50x.

then the total cost must be 50 and the revenue is 50. they are even.

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