How many computers must the AB Computer Company sell to break even? Let x be the number of computers. Cost Function: C (x) = 145 + 1/4x Revenue Function: R (x) = 1.5x

Question

asked Sep 16, 2020 91.8k views

2 Answers

Manishg · Answer 1 · 2020-09-17T02:24:14+0000

You break even if you spend exactly as much as you gain. In other words, if the cost and the revenue are the same:

$C(x)=R(x) \iff 145+0.25x=1.5x$

Subtract 0.25 from both sides:

145=1.25x

Divide both sides by 1.25:

x=(145)/(1.25)=116

So, they must sell 116 computers to break even. If they sell less, they'll lose money. If they sell more, they'll start making profit.

Dawn T Cherian · Answer 2 · 2020-09-22T06:24:50+0000

Answer: AB Computer company must sell 116 computers to break even.

Explanation:

Hi, to break even the cost and revenue must be the same, so, both equations must be equal.

Mathematically speaking:

C(x)=R(x)

145+1/4x= 1.5x

Solving for x:

145 = 1.5x-1/4x

145=1.25x

145/1.25 =x

116=x

So, AB Computer Company must sell 116 computers to break even.

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