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harkovskaia [24]
3 years ago
8

A small business produces and sells balls. The fixed costs are $20 and each ball costs $4.32 to produce. Each ball sells for $8.

32. Write the equations for the total cost, C, and the revenue, R, then use the graphing method to determine how many balls must be sold to break even.

Mathematics
1 answer:
Gemiola [76]3 years ago
5 0

Part 1:

Fixed Cost, f = $20

number of balls = n

Cost of each ball, c = 4.32

Price of each ball, p = 8.32

Equation for total cost:

Total Cost of balls will come by adding the cost of all balls and the fixed cost

Total Cost = number of balls made × Cost of each ball + fixed cost

<em>C = 4.32n + 20</em>

Equation for revenue:

Revenue  = Number of balls made × price of each ball

<em>R =  8.32n </em>

Part 2:

Use the graphing method to determine how many balls must be sold to break even

Breakeven means Revenue =  total Cost

This happens at a point (5,41.6) where n = 5 is the number of balls sold

and C = 41.6 is the total cost

When 5 balls are sold there will be breakeven

R = 4n - 20  

C = 4.32n + 20

Red line represent Cost

Black line represent Revenue

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