You invest in a new play. The cost includes an overhead of $26,250 plus production costs of $2500 per performance. A sold out performance brings in $3125. (In solving this exercise, let x represent the number of sold out performances).

a. write the cost function, c= 26,250 + 2500x

b write the revenue function, r= 3125x

c.determine the break even point. describe what this means.

break-even point : 26,250 + 2500x = 3125x

This means that the revenue equals costs

a. c(x)=26,250 + 2500x

type an expression using the x as the variable:

3125x - 2500x = 26250

625x = 26250

x = 26250 /625

b. r(x)=3125x

type an expression using the x as the variable

c. determine the break even point

describe what this means

a. revenue and overhead cost are equal

b. revenue and production are equal

c. cost and overhead are equal

d. cost and revenue are equal