Download the App!

Get 24/7 study help with the Numerade app for iOS and Android! Enter your email for an invite.

Get the answer to your homework problem.

Try Numerade free for 7 days

Like

Report

Suppose that the manufacturer in Exercise 1 can manage to reduce the overhead to $1,200$. How does this affect the break-even point?

It reduces to $\$ 80$

Algebra

Chapter 1

Functions and their Applications

Section 3

Applications of Linear Functions

Functions

Missouri State University

Oregon State University

Baylor University

Lectures

01:43

In mathematics, a function is a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output. An example is the function that relates each real number x to its square x^2. The output of a function f corresponding to an input x is denoted by f(x).

03:18

00:31

In your own words, explain…

00:34

02:17

If you are solving a break…

04:57

Refer to Exercise 41. Is i…

01:30

03:54

Suppose that by some mirac…

working with applications toe linear functions. We're going to be calculating break even points and determining how they differ as fixed overhead costs change. So let's assume, first, that we have a manufacturer with overhead costs of $2500 cost per item, they're producing of $30 and a selling price of $45. With that, their cost function is given up with the top here, and their break even point with that is 166.67 Now suppose that they were able to reduce their overhead costs from 2500 to 1200. Instead, we want to determine what their new break even point is. And in order to do this, we first need to calculate a new cost function. And because we know that the only thing that's changed from our manufacturer and it's the first period to the second period has been the break even number, we could just substitute this in for where the old break even point waas. So our new cost function is going to simply be equal to 1200 plus 30 X now in order, Thio, determine our break even point what we need to do a set our cost function equal to a revenue function. Let's establish the revenue function real quick, which is going to be equal to the total or the selling price of each item, which we know to be 45 times the number of items sold. That's going to be the revenue that the manufacturers able to gain so calculating a break even point. We can set these equal to one another 1200 plus 30 X being equal to 45 x. From there, we'll start by getting our excess onto the same side as one another. Subtract 30 x from both sides. We get 1200 is equal to 15 x and dividing both sides. By 15. We end up with ex being equal to 80. That is our new break even point with overhead Cosby and reduced from 2500 to 1200

View More Answers From This Book

Find Another Textbook

Numerade Educator

02:02

Use the first derivative to determine where the given function is increasing…

02:28

(a) Find the $x$ -intercept(s); (b) Find the vertical asymptotes; (c) Find t…

02:44

If a manufacturer has fixed costs of $700,$ a cost per item for production o…

02:10

Find $f^{\prime}(x)$ if $f(x)=\sqrt{2 x^{3}+3 x+2}$.

09:32

Given $f(x, y, z)=x^{2}-2 x y^{2}-3 y^{3} z^{2}+z^{2},$ determine (a) $f(1,-…

01:10

Suppose it has been determined that the demand (in thousands of dollars) for…

05:35

Determine the equation of the tangent line to the given curve at the indicat…

02:35

Determine the equation of the tangent line at the indicated $x$ -value.$…

01:00

Sketch the graph of the function defined in the given exercise. Use all the …