Math Problem Statement
Solution
The problem involves a fast-food restaurant's production costs and revenue. We're given:
- The cost function , where represents the number of units produced.
- The revenue function .
The company starts to turn a profit when its revenue exceeds its cost. This occurs when:
Substituting the given functions:
Now, let's solve for :
Since the company starts turning a profit after producing a whole number of units, we round 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:
- How do fixed costs affect a company's break-even point?
- What would happen if the cost function had a different slope?
- How is profit maximization different from the break-even analysis?
- How do changes in revenue affect the production threshold for profit?
- 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