need to find cost, revenue, profit functions

Question

The cost and revenue function are linear.  All units are sold.  The fixed cost is $2400 and the variable is $16 per item.  The item sells for $64.  Find the cost function, revenue function, profit function, and the break-even point.

Answer 1

Let x = the number of items sold.

 

     Cost = $16x + $2400

     Revenue = $64x

 

     Profit = Revenue - Cost = 64x - (16x+2400) = 48x - 2400

 

Break even when Revenue = Cost:

 

     64x = 16x + 2400

 

Solve for x.