a. C=3500+6x
b. R=30x
c. P=R-C=24x-3500
d. the break even production rate is when the profit is just equal to 0 i.e. 24x-3500 =0 so x=3500/34=146 shirts/mo
Make sense?
Jim

Jim S.
tutor
Yes you are correct sorry. that makes the break even =3500/14=250 shirts
P(100)=14*100-3500=-2100 This is the anticipated profit from the sale of 100 shirts. Notice it a loss...it's lower than the break-even volume of 250
Jim
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03/06/16
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