A company manufactures computers. The company has an overhead cost of $ 6000 and a manufacturing cost of $ 200 per computer. If the company sells computers at a price of $ 400 per computer, determine the number of units the company must sell to break even. A. 50 B. 40 C. 30 D. 10 E. 20
Added by Patricia P.
Close
Step 1
Step 1: Calculate the total cost function: Total Cost = Fixed Cost + (Manufacturing Cost per computer * Number of computers) Total Cost = $6000 + $200X Show more…
Show all steps
Your feedback will help us improve your experience
Chapman Howard and 83 other Precalculus educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Tim T.
a) The total cost $C(x)$ of producing $x$ computers b) The total revenue $R(x)$ from the sale of $x$ computers c) The total profit $P(x)$ from the production and sale of $x$ computers d) The profit or loss from the production and sale of 100 computers; of 400 computers e) The break-even point
More on Systems
Business and Economics Applications
A company has cost function $C(q)=4000+2 q$ dollars and revenue function $R(q)=10 q$ dollars. (a) What are the fixed costs for the company? (b) What is the marginal cost? (c) What price is the company charging for its product? (d) Graph $C(q)$ and $R(q)$ on the same axes and label the break-even point, $q_{0} .$ Explain how you know the company makes a profit if the quantity produced is greater than $q_{0}$ (e) Find the break-even point $q_{0}$.
Functions and Change
Application of Fuctions to Economics
Recommended Textbooks
Precalculus with Limits
Precalculus
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD