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1 answer:
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Part 1:
Fixed Cost, f = $20
number of balls = n
Cost of each ball, c = 4.32
Price of each ball, p = 8.32
Equation for total cost:
Total Cost of balls will come by adding the cost of all balls and the fixed cost
Total Cost = number of balls made × Cost of each ball + fixed cost
<em>C = 4.32n + 20</em>
Equation for revenue:
Revenue = Number of balls made × price of each ball
<em>R = 8.32n </em>
Part 2:
Use the graphing method to determine how many balls must be sold to break even
Breakeven means Revenue = total Cost
This happens at a point (5,41.6) where n = 5 is the number of balls sold
and C = 41.6 is the total cost
When 5 balls are sold there will be breakeven
R = 4n - 20
C = 4.32n + 20
Red line represent Cost
Black line represent Revenue
