Problema Solution
A company that manufactures chairs has a fixed cost of $742,500. It costs $23 to produce each chair. The selling price is $78 per chair. Write the cost function, the revenue function, and determine the break-even point.
Answer provided by our tutors
The cost function is:
C(x) = 742,500 + 23x
The revenue function is:
R(x) = 78x
Break-event point happens when:
C(x) = R(x)
742500 + 23x = 78x
........
........
x = 13,500 chairs
The break-even point is x = 13,500.