Math Problem Statement

Linear cost and revenue equations are shown below. Find the break-even quantity. C(x) = 13x + 11800, R(x) = 213x

Solution

To find the break-even quantity, we need to determine the value of xx where the cost C(x)C(x) equals the revenue R(x)R(x). In other words, we solve the equation:

C(x)=R(x)C(x) = R(x)

Given: C(x)=13x+11800C(x) = 13x + 11800 R(x)=213xR(x) = 213x

Setting these equal: 13x+11800=213x13x + 11800 = 213x

Now, let's isolate xx:

  1. Subtract 13x13x from both sides: 11800=200x11800 = 200x

  2. Divide both sides by 200 to solve for xx: x=11800200=59x = \frac{11800}{200} = 59

Therefore, the break-even quantity is: x=59x = 59

Answer:

The break-even quantity is x=59x = 59.

Would you like further details or have any questions?

Here are 5 related questions for further exploration:

  1. What is the total cost at the break-even point?
  2. What is the revenue at the break-even point?
  3. How would the break-even quantity change if the fixed cost increased?
  4. What happens to the break-even quantity if the revenue per unit decreases?
  5. Can there be multiple break-even points for non-linear cost and revenue functions?

Tip: The break-even point is found where total cost equals total revenue, which can reveal the minimum sales needed to avoid a loss.

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Math Problem Analysis

Mathematical Concepts

Linear Equations
Algebra
Break-even Analysis

Formulas

C(x) = 13x + 11800
R(x) = 213x
C(x) = R(x)

Theorems

Solving Linear Equations
Break-even Analysis

Suitable Grade Level

Grades 8-10