math, breakeven point

AutoTime, a manufacturer of electronic digital timers, has a monthly fixed cost of $48,000 and a production cost of $8 for each timer manufactured. The timers sell for $14 each.

My cost function is 8x+48,000
My revenue function is 14x
My profit function is 14x-8x+48,000 which equaled to 6x+48,000
How do I set up the formula for the breakeven point?

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  1. Wait. I think it is 8000. I set them equal to each other and then divided 48000 by 6. At first, I was confused because I thought I was just repeating the profit function.

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  2. you messed up profit function. Should be14x-8x-48,000
    when that equals zero, that is the breakeven point

    6x-48000=0
    x= 8000 units

    a more common method is to set revenue equal to cost, and solve
    14x=8x+48000 and you get the same solution

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    bobpursley

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