Problema Solution
Baskets, Inc. is planning to introduce a new woven basket. The company estimates that $500 worth of new equipment will be needed to manufacture this new type of basket and that it will cost $15 per basket to manufacture. The company also estimates that the revenue from each basket will be $31.
a.Determine the revenue funtion R(x) from the sale of x baskets
b. determine the cost function C(X) for manufacturing x baskets
c. Find the break-even point.
Answer provided by our tutors
Given this
500 + 15x = 31x;
500 = 16x
31.25 = x
You will need 32 to break even/ show a profit.
15(31.25) = 468.75 + 500 = 968.75
31.25(31) = 968.75