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December 19, 2014

December 19, 2014

Posted by **charmaine** on Tuesday, January 17, 2012 at 9:48pm.

- calculus for business -
**cumhoc**, Tuesday, January 17, 2012 at 11:31pmtelephones are not cheap to make, young whoppa

- calculus for business -
**Steve**, Wednesday, January 18, 2012 at 12:29ambreakeven occurs when cost = revenue

don't know whether you have + or minus x^2. On my keyboard, + and = are the same key, so I'll assume "+".

x^2 + 20x + 500 = 80x

x^2 - 60x + 500 = 0

(x-10)(x-50) = 0

So, for x between 10 and 50, cost is less than revenue.

This is a strange model. Usually as quantity increases, cost goes down.

Maybe you should have had C(x) = 500 + 20x - 1/x^2

or something. That would mean there's a fixed cost of $500 just for making phones, and a $20/phone cost for materials, say, and a decreasing manufacturing cost as quantity goes up. (efficiency of scale)

In that case, we'd have

500 + 20x - 1/(x^2+1) = 80x

That shows costs greater than revenue until x = 8.3 or so, then revenue is greater than costs.

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