Question

The cost and revenue functions for producing and selling x units of a product are given. Cost and revenue are expressed in dollars. Upper C (x )equals 75 x plus 84 comma 660 Upper R (x )equals 245 x a. Find the number of units that must be produced and sold to break even. At this​ level, what is the dollar amount coming in and going​ out? b. Write the profit function from producing and selling x units of the product.

Answer 1

Answer:

(A) the number of units produced and sold at break-even point is the value of X and that is 1.126 units.

(B) the dollar amount coming in and going out at this point/level is the price of X and that is 0.37 dollars

(C) the profit function for X units produced and sold is: π(x) = R(x) - C(x)

where pie (the symbol "π") represents PROFIT.

Step-by-step explanation:

(A) C(x) = 75x + 84 ...(equation 1)

660R(x) = 245x

R(x) = 245x ÷ 660 = 0.3712x

So R(x) = 0.3712x ...(equation 2)

To find X, equate the cost function to the revenue function

75x + 84 = 0.3712x

X = -1.126units

Since quantity cannot be negative in real life situation, we use the modulus of X in place of the above value.

|X| = 1.126 hence X = 1.126 now

Since we equated cost to revenue in order to get this quantity X, X is the quantity produced and sold at break even point.

Break-even point is the point where cost = revenue

This is also the point where profit is zero because profit = revenue - cost

(B) Revenue = Price × Quantity

R = P×Q

Our revenue here is 0.3712x

Which is equal to 0.418 dollars

So P = R÷Q

Price = 0.418÷1.126 = 0.37 dollars

(C) This is the profit function from producing and selling X units of the product: π(x) = R(x) - C(x)