Answer:
<u>The company needs to sell at least 93 guitars for a total revenue of $ 11,160 to start making a profit.</u>
Correct statement and question:
A music company is introducing a new line of acoustic guitars next quarter. These are the cost and revenue functions, where x represents the number of guitars to be manufactured and sold:
r(x) = 120x
c(x) = 100x + 1,840
The company needs to sell at least ___________ guitars for a total revenue of $ __________ to start making a profit.
Source:
Question that can be found at e-eduanswers dot com. Can't copy and paste the URL because brainly will block it.
Step-by-step explanation:
Let's recall the formula of the break-even point:
Revenue - Cost = 0
Revenue = Cost
Replacing with the information we know, for solving for x:
120x = 100x + 1,840
120x - 100x = 1,840
20x = 1,840
x = 1,840/20
x = 92
If the company needs to sell at least 92 guitars to reach the break-even point, selling 93 will allow them to start making a profit.
r(93) = 120 * 93 = 11,160
c(93) = 100 * 93 + 1,840 = 11,140
Profit = 11,160 - 11,140 = 20
