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satela [25.4K]
2 years ago
7

A company that teaches self-improvement seminars is holding one of its seminars in Middletown. The company pays a flat fee of $1

17 to rent a facility in which to hold each session. Additionally, for every attendee who registers, the company must spend $14 to purchase books and supplies. Each attendee will pay $15 for the seminar. Once a certain number of attendee register, the company will be breaking even. How many attendees will that take? What will be the company's total expenses and revenues?
Mathematics
1 answer:
Nutka1998 [239]2 years ago
7 0

Answers:

To reach the breakeven point, how many attendees will that take?  <u>   117   </u>

What will be the company's total expenses and revenues?  <u>    $1755  for each   </u>

=============================================================

Explanation:

x = number of attendees

C(x) = cost function for the company

C(x) = 14x+117

This is because the company pays $14 per person, so x of them accounts for 14x dollars. Then we add on the flat fee of $117 to get 14x+117 dollars overall.

In contrast, the revenue is

R(x) = 15x

because each attendee brings in $15 for the company

The breakeven point is when the cost and revenue are the same. This produces a profit of $0.

R(x) = C(x)

15x = 14x+117

15x-14x = 117

x = 117

If 117 people attend the seminar, then the company breaks even.

To check this, we'll compute the cost and revenue

C(x) = 14x+117

C(117) = 14*117+117

C(117) = 1755

R(x) = 15x

R(117) = 15*117

R(117) =  1755

The cost and revenue is $1755 for each. Because we get the same value, this confirms the correct x value.

Since 117 people is the breakeven point, the company should aim for an attendee count above this, so they can get a positive profit. At some point, there is a max capacity so x can't go up forever.

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