what the equation for revnue write the equation for total cost find the break even quanity ?

Question

A Company manufactures and sells bookcases. The selling price is $54.90 per bookcase. The total cost function is linear and cost amount to $50,000 for 2000 books and $32,120 for 800 book cases

 

a. Write the equation for revenue

b. Write the equation for total costs

c. Find the break even quantity

Answer 1

revenue function is 54.9x

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Cost function:

(2000, 50000)

(800, 32120)

slope is 14.9

b = y - mx = 50000 - 14.9*2000 = 20200

y = 14.9x + 20200

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break even:

54.9x = 14.9x + 20200

40x = 20200

x = 505

must sell 505 to break even