Math Problem Statement

A fast-food restaurant has a cost of production C(x) = 6x + 120 and a revenue function R(x) = 13x. When does the company start to turn a profit?

Solution

The problem involves a fast-food restaurant's production costs and revenue. We're given:

  • The cost function C(x)=6x+120C(x) = 6x + 120, where xx represents the number of units produced.
  • The revenue function R(x)=13xR(x) = 13x.

The company starts to turn a profit when its revenue exceeds its cost. This occurs when:

R(x)>C(x)R(x) > C(x)

Substituting the given functions:

13x>6x+12013x > 6x + 120

Now, let's solve for xx:

13x6x>12013x - 6x > 120 7x>1207x > 120 x>1207x > \frac{120}{7} x>17.14x > 17.14

Since the company starts turning a profit after producing a whole number of units, we round xx up to the nearest whole number, which is 18.

Thus, the company starts to turn a profit when the production level reaches at least 18 units.

Would you like more details, or have any questions about this solution?

Relative Questions:

  1. How do fixed costs affect a company's break-even point?
  2. What would happen if the cost function had a different slope?
  3. How is profit maximization different from the break-even analysis?
  4. How do changes in revenue affect the production threshold for profit?
  5. What if the cost function were non-linear—how would the calculation change?

Tip:

Always check if the profit function involves rounding or additional conditions, as small details can affect the final solution.

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Math Problem Analysis

Mathematical Concepts

Linear Equations
Inequalities
Profit Calculation

Formulas

Profit Condition: Revenue > Cost
Cost Function: C(x) = 6x + 120
Revenue Function: R(x) = 13x

Theorems

Profit occurs when revenue exceeds cost

Suitable Grade Level

Grades 9-12