# Other : MAT/116 Week 3 dq 2

DQ2

A real world application

involves the concept of “break-even” analysis. When we

produce and sell a

product, the break-even point is the point at which the money

received (revenue)

equals the cost to produce.

Review the revenue, cost and profit example 11 on page 144 of

the text

and solve the following problem which involves equations,

formulas and

inequalities.

The cost to produce one

compact disc is $1.50 plus a one-time fixed cost of $2000.

The revenue received

from selling One compact disc is $12

a) Write a formula that

gives the cost C of producing

x

compact discs. Be sure to include the fixed cost.

b) Write a formula that

gives the revenue R from selling

xcompact discs.

c) Profit equals revenue

minus cost. Write a formula that calculates the profit P from

selling

xcompact discs.

d) How many compact discs

need to be sold to yield a positive profit?