A company makes pens. They sell each pen for $6. Their revenue is represented by R = 6 x. The cost to make the pens is $ 1 each with a one time start up cost of $5000

Question

Their cost is represented by C = 1 x + 5000. a) Find the profit, P, (P = R - C) when the company sells 1000 pens. b) Find the number of pens they need to sell to break even (when R = C). 

Answer 1

R=C

6x = x + 5000

5x = 5000

x = 5000/5 = 1000 pens to break even

Profit = R-C = 0 when they sell 1000 pens