How many units must be manufactured and sold each day for the company to break even?

Question

asked Jul 24, 2023 206k views

1 Answer

Sushil · Answer 1 · 2023-07-28T20:40:07+0000

Answer:

Step-by-step explanation:

The cost and revenue function of the company is given below:

$\begin{gathered} \text{Cost:}y=33,000+1,300x \\ \operatorname{Re}venue\text{: }y=1600x \end{gathered}$

For the company to break-even, the cost of production must be equal revenue generated.

That is:

Next, solve for x.

$\begin{gathered} 1600x-1300x=33,000 \\ 300x=33,000 \\ x=(33,000)/(300) \\ x=110 \end{gathered}$

Thus, the company must manufacture and sell 110 units of riding lawn mowers