Question

If a widget factory as a fixed operating cost of $2,500 per day plus a cost of $1.50 per widget produced. If a widget sells fro $5.00, what is the least number of widgets that must be sold per day to make a profit?

Answer 1

At least 714 numbers of widgets must be sold per day to make a profit.

Given fixed operating cost = $2,500 per day cost of widget =$ 1.50

widget sells = $ 5.00

Cost function = C(X)=1.50x+2500

Revenue function = R(X)=5 x

At Break Even point R (X) = C (X)5

X= 1.50X+25003.5

X =2500X =714

hence to reach break even point or make profit 714 no to be sold.R(714)= 3571.

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