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 where the cost equals the revenue . In other words, we solve the equation:
Given:
Setting these equal:
Now, let's isolate :
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Subtract from both sides:
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Divide both sides by 200 to solve for :
Therefore, the break-even quantity is:
Answer:
The break-even quantity is .
Would you like further details or have any questions?
Here are 5 related questions for further exploration:
- What is the total cost at the break-even point?
- What is the revenue at the break-even point?
- How would the break-even quantity change if the fixed cost increased?
- What happens to the break-even quantity if the revenue per unit decreases?
- 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
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