Question

Given the cost function Upper C (x )and the revenue function Upper R (x )​, find the number of units x that must be sold to break even. Upper C (x )equals14xplus72 comma 000 and Upper R (x )equals18x.

Answer 1

18,000 units .

Explanation:

The cost function C(x) and the revenue function R(x) are, respectively:

`C(x) = 14x +72,000\\R(x)= 18x`

In order to break even, the revenue function, for a given value of "x" must yield a value equal or greater than the cost function. Simply equal both functions to find a minimum value of x needed to break even:

`C(x) = R(x)\\14x +72,000 = 18x\\4x=72,000\\x=18,000`

18,000 units must be sold in order to break even.