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Math

Math Snap

PROBLEM

Find the break-even point for the cost function C(x)=39000+2400xC(x)=39000+2400x and revenue function R(x)=3150xR(x)=3150x.

STEP 1

Assumptions1. The cost function is C(x)=39000+2400xC(x)=39000+2400x
. The revenue function is R(x)=3150xR(x)=3150x
3. C(x)C(x) represents the total cost of producing 'x' units of a product with 39,000asthefixedcostand39,000 as the fixed cost and ,400 as the variable cost per unit produced4. R(x)R(x) represents the revenue made from selling 'x' units of the product at a price of $3,150 per unit

STEP 2

The break-even point is the point at which the cost equals the revenue. In other words, it's the point at which the company neither makes a profit nor incurs a loss. Mathematically, it can be represented asC(x)=R(x)C(x) = R(x)

STEP 3

Now, plug in the given values for the cost function and the revenue function to find the break-even point.
39000+2400x=3150x39000+2400x =3150x

STEP 4

To solve for 'x', we need to isolate 'x' on one side of the equation. We can do this by subtracting 2400x2400x from both sides of the equation.
39000+2400x2400x=3150x2400x39000+2400x -2400x =3150x -2400x

STEP 5

implify the equation.
39000=750x39000 =750x

STEP 6

Now, to solve for 'x', divide both sides of the equation by750.
x=39000750x = \frac{39000}{750}

SOLUTION

Calculate the value of 'x'.
x=39000750=52x = \frac{39000}{750} =52The break-even point is when52 units of the product are produced and sold.

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