The graph shows the cost and revenue equations for a product. Dollars y 16,000 14,000 12,000 C = 0.5x + 4000 10,000 8,000 (10,000, 9000) 6,000 4,000 2,000 R = 0.9x x 2000 6000 10,000 14,000 18,000 Number of units (a) For what number of units sold does the company break even? units (b) For what numbers of units sold is there a loss for the company? If less than units are sold, the company loses money. (c) For what numbers of units sold is there a profit for the company? If more than units are sold, the company makes a profit.
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This is the point where the company's total costs equal its total revenue, meaning there is no profit or loss. Show more…
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The graph shows the cost and revenue equations for a product. (a) For what number of units sold does the company break even? units (b) For what numbers of units sold is there a loss for the company? If less than units are sold, the company loses money. (c) For what numbers of units sold is there a profit for the company? If more than units are sold, the company makes a profit.
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Suppose a company's revenue R (in dollars) from the sale of x units of its product is given by R = 260x. Suppose further that the total costs C (in dollars) of producing those x units is given by C = 70x + 14,000. (a) If profit is revenue minus cost, find an expression for the profit from the production and sale of x units. (b) Find the profit received if 5000 units are sold.
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Profit Analysis A business manufactures a product at a cost of $\$ 50$ per unit and sells the product for $\$ 120$ per unit. The company's initial investment to produce the product is $\$ 350,000$. The company estimates it can sell $13,000$ units. (a) Write a linear equation giving the total cost $C$ of producing $x$ units. (b) Write an equation for the revenue $R$ derived from selling $x$ units. (c) Use the formula for profit, $P=R-C,$ to write an equation for the profit derived from $x$ units produced and sold. (d) If the estimated sales of $13,000$ units occurs, what is the company's profit or loss? (e) How many units must the company sell to break even?
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