Alex B. answered 12/10/19
University of Washington PhD for Math and Science Tutoring
A breakeven analysis is asking, "At what point does the company stop losing money and start making money?" To answer that question, you must set revenues and costs equal to each other. (The point at which revenues balance costs is the "breakeven point.")
However, the equations as written don't seem to make any sense. Here's why:
Total cost: 30000 + (2/5)x + 333
Total revenue: 1363 - (3/5)x
So...
30000 + (2/5)x + 333 = 1363 - (3/5)x
Add (3/5)x to both sides:
30333 + x = 1363
That means x = -28,970, which is a nonsensical answer. (X is the number of units sold, which can't be negative.) Are you sure the equations are written correctly?
Walker H.
the equation is correct because I have the same problem, but I'm not sure how to get the maximum revenue and the maximum profit as well as the price that will maximize the profit.02/07/22