Question

A manuacturer of household items has total revenue given by the function R=17.5x and has total cost given by C=15x+300 where x is the number of items produced and sold. Use graphical methods to find the number of units at which the manufacturer wil break even for the product.
The number of units that gives break even for the products is ?
(Simplify your answer)

Answer 1

Answer:

Break-even point in units= 120 units

Step-by-step explanation:

Giving the following formula:

Selling price= $17.5

Unitary cost= $15

Fixed costs= $300

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 300 / (17.5 - 15)

Break-even point in units= 120 units