Other : MAT/116 Week 3 dq 2
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
equals the cost to produce.
Review the revenue, cost and profit example 11 on page 144 of
and solve the following problem which involves equations,
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
compact discs. Be sure to include the fixed cost.
b) Write a formula that
gives the revenue R from selling
c) Profit equals revenue
minus cost. Write a formula that calculates the profit P from
d) How many compact discs
need to be sold to yield a positive profit?