Question

A company is planning to produce and sell a new line of computers. The fixed cost will be $360,000 and it will cost $850 to produce each computer. Each computer will be sold for $1150. Solve, a. Write the cost function, C, of producing x computers. b. Write the revenue function, R, from the sale of x computers. c. Determine the break-even point. Describe what this means.

          A company is planning to produce and sell a new line of computers. The fixed cost will be $360,000 and it will cost $850 to produce each computer. Each computer will be sold for $1150. Solve,
a. Write the cost function, C, of producing x computers.
b. Write the revenue function, R, from the sale of x computers.
c. Determine the break-even point. Describe what this means.
        
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Calculus: Early Transcendentals
Calculus: Early Transcendentals
James Stewart 8th Edition
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A company is planning to produce and sell a new line of computers. The fixed cost will be $360,000 and it will cost $850 to produce each computer. Each computer will be sold for $1150. Solve, a. Write the cost function, C, of producing x computers. b. Write the revenue function, R, from the sale of x computers. c. Determine the break-even point. Describe what this means.
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Transcript

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00:01 Hi, in the given problem, the fixed cost fc is equal to 360 ,000 and the cost to produce each computer is 850.
00:17 So 850 is the cost to produce each computer, each computer.
00:37 So hence the cost function is given as cx.
00:41 So that's the cost function for the unit of production which is fixed cost which is 360 ,000 plus the variable cost now the variable cost will be 850 times number of computers produce the cost of each computer so that is 850 x so that gives us the cost function so this is the answer for the part a in part b each computer is sold for sp is one one five zero per computer so each computer is sold for one one five zero five zero dollars so the revenue function are x which is a revenue function that is given as one one five zero x now the break even point is when the revenue is equal to the cost the break even point is when the revenue rx is equal to cx which is one one one five zero x is equal to 360 ,000 plus 850x.
02:11 So that means from here we get x is equal to 360 ,000 over 1150 minus 850 which is 300...
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