How many copies should be sold in order to break even?

Question

Your college newspaper, The Collegiate Investigator, has fixed production costs of $72 per edition and marginal printing and distribution costs of 40¢ per copy. The Collegiate Investigator sells for 50¢ per copy.

(a)

Write down the associated cost function C(x) in dollars.

C(x) =  

0.40x+72

 

 

Write down the revenue function R(x) in dollars.

R(x) =  

0.50x

 

 

Write down the profit function P(x) in dollars.

P(x) =  

0.1x−72

 

(b)

What profit (or loss) results from the sale of 500 copies of The Collegiate Investigator?

$  -22

Answer 1

0.5 x = 0.4x + 72

0.1x = 72

x = 720

720 newspapers to break even

only sell 500...

0.5*500 - 0.4*500 - 72 =

250 - 200 - 72

50-72

= -22

LOSS