The cost function for a product is given by and the revenue function is given by , where is the number of product units.
The break-even point will occur when the number of products is... Units.
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The cost function for a product is given by B(x)=360+40x+0.1x2 and the revenue function is given by P(x)=60x, where x is the number of product units.
The break-even point will occur when the number of products is... Units.
Concept of Break-Even Point
The Break-Even Point is the condition where there is neither profit nor loss, meaning total revenue equals total cost.
Solving the Equation
Substitute the given functions:
To make calculation easier, multiply both sides by 10:
Determining the Value of x
We use quadratic factorization. We look for two numbers that multiply to 3600 and add up to −200. These numbers are −180 and −20.
The roots are:
Thus, the break-even point occurs when the number of products is 180 units and 20 units.