The problem states that a manufacturer sells belts for $15 per unit. The fixed costs are $3000 per month, and the variable cost per unit is $10. (a) We need to write the equations for the revenue $R(x)$ and cost $C(x)$ functions. (b) We need to find the break-even point.
2025/5/19
1. Problem Description
The problem states that a manufacturer sells belts for 3000 per month, and the variable cost per unit is $
1
0. (a) We need to write the equations for the revenue $R(x)$ and cost $C(x)$ functions.
(b) We need to find the break-even point.
2. Solution Steps
(a)
The revenue function is the amount of money earned from selling units, which is the price per unit times the number of units sold. Since the price per unit is $15, the revenue function is
The cost function is the total cost of producing units, which is the sum of the fixed costs and the variable costs. The fixed costs are 10, so the total variable cost is . Therefore, the cost function is
(b)
The break-even point is where the revenue equals the cost, so we set and solve for .
Subtract from both sides:
Divide by 5:
It takes 600 units to break even.
3. Final Answer
(a)
(b) It takes 600 units to break even.