Problema Solution
A software manufacturer sells one of its products at $100 per license. The costs of producing and selling the software are $9,500 for development and $5 for making a compact disc (CD), packaging, shipping, and handling. Set up the cost and revenue functions, and use this information to determine how many licenses need to be sold for the company to break even.
Answer provided by our tutors
let 'x' represent the number of products sold
cost expression:
9500 + 5x
revenue expression:
100x
we want to solve for 'x' when cost is equal to revenue:
9500 + 5x = 100x
9500 = 95x
x = 100
the company needs to sell 100 licenses in order to break even