A factory has a cost of production C(x) = 150x + 15,000 and a revenue function R(x) = 200x. What is the break-even point?

Answer 1

Given:

C( x ) = 150x + 15000

R( x ) = 200x

Find:

Break-even point? x = ?

Assume:

To break even, the revenue taken in equals the cost spending out

Solution:

R(x) = C(x)

200x = 150x + 15000

50x = 15000

∴ x = 300

It should be noted, anywhere beneath that 300 point, the company is losing on its investment (C > R).

And anywhere above that 300 point, the company is gaining on its investment (R > C).

I hope this helps! Message me in the comments with any questions, comments, or concerns!