posted by jen
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
what is your question? a) is just plug the numbers in for m,b. b) is graph it.
c) is graph a new equation on the same graph.
d) is where the lines cross.
You will have to draw your own graphs. We can't do it for you here.
(a) Cost: C = 10 x + 40 (in dollars)
(c) Revenue: R = 50 x
(d) Look for the point on your graph were the C and R lines intersect. That will be the breakeven point.
It will also be where 10 x + 40 = 50 x