Question

Finding the Break-Even Point and the Profit Function Using Substitution Given the cost function C(x)=0.85x+35,000 and the revenue function R(x)=1.55x,find the break-even point and the profit function?

Answer 1

Answer:

$x=50000$

$P(x)=0.7x-35000$

Step-by-step explanation:

Given cost function is

$C(x)=0.85x+35000$

and revenue function is

$R(x)=1.55x$

At break even point, revenue is equal to cost

R(x)= C(x)

$1.55x=0.85x+35000$

Subtract 0.85 from both sides

$0.7x=35000$

divide by 0.7 on both sides

$x=50000$

Profit function

P(x)= R(x)- C(x)

$P(x)=1.55x-(0.85x+35000)$

$P(x)=1.55x-0.85x-35000$

$P(x)=0.7x-35000$