Question

A small company manufacturers a certain item and sells it online. The company has business model where the cost C, in dollars, to make x is given by the equation C=20/3x+50 and the revenue R, in dollars, made by selling x items is given by the equation R=10x. The break even point is the point where the cost and the revenue equations intersect.

Answer 1

Answer:

Step-by-step explanation:

We know that the break even point is the point where the cost and the revenue equations intersect.  So the break even point in this situation is:

C= R

<=> 20/3x+50 = 10x (with x > 0 and x is a whole number)

<=> $10x^{2}$ -50x -20 = 0

<=> x ≈ 5

If the company sells more than 5 items, it will have benefit

If the company sells less than 5 items, it will lose