posted by Matt
Belmont Records produces DVD records. The fixed costs for producing a record are $160,000, and unit cost amount to 85 cents per record. The revenue is $5 per DVD.
(a) How many DVDs must be sold in order to break even?
(b) Find the profit or loss if 20,000 DVDs are sold.
(c) Find the profit or loss if 50,000 DVDs are sold.
for x DVDs, break-even is when
160000+.85x = 5x
p(x) = 5x - (160000+.85x)
that should help