00:01
All right, not too much calculus involved in this problem, just a lot of business understanding.
00:05
It tells you that x is going to denote the number of thingamabobs produced, and it's asking you for a cost function and a revenue function.
00:14
So the first thing it tells you, it says the company that makes thingamabobs has a startup cost, so that's a cost, part of the cost equation, $34 ,404.
00:25
And then it costs the company $1 .58 per thingamabob, right? so 1 .58x.
00:33
Then it tells you that they charge $4 .44 when they sell them.
00:40
So the revenue is going to be $4 .44 times the number of thingamabobs they sell.
00:46
So if you can imagine at the startup, obviously the cost is going to be much greater than the revenue coming in.
00:53
So what we're looking for there is the break -even point.
00:56
So the break -even point is where the revenue equals the cost.
01:02
And as soon as the cost is lower than the revenue on our graph, we know we're going to be making some profit...