Question

10. What are the break-even points of the profit function (the values of x where profit equals 0)? Use the quadratic formula. (4 points: 2 points for each x-value)

Answer 1

Answer:

r = 50000

P (r) = 0.7r - 35000

Step-by-step explanation:

Given cost function is

C (r) = 0.85r + 35000

and revenue function is

R (r) = 1.55r

At break even point, revenue is equal to cost

R(x)= C(x)

1.55r = 0.85r+35000

Subtract 0.85 from both sides

0.7r = 35000

divide by 0.7 on both sides

r = 50000

Profit function

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

P(r) = 1.55r - (0.85r+35000)

P(r) = 1.55r - 0.85r - 35000

P(r) = 0.7r - 35000