The Cost function is the amount that each canoe costs, as well as the fixed cost.
let C(x) be the total amount let x be the canoe produced
C(x) = 40x + 18000
The revenue function is the amount the canoe is selling at.
R(x) = 160x
160x = 40x + 18000
find what x is, subtract 40x from both sides
160x (-40x) = 40x (-40x) + 18000
160x - 40x = 18000
120x = 18000
isolate the x, divide 120 from both sides
120x/120 = 18000/120
x = 18000/120
R(x) = 150
I believe C means: Break- even point: if it means the amount to make it back to $0.
Use "160x = 18000 + 40x" again. x should still = 150, for after 150 canoes, they would make $0 profit. <em>A. the money coming in equals the money going out</em> (for $0 profit)