A company that has a feed coat of 16000 to produce each The
Solution
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Fixed cost $16000
cost of producing one unit $ 80
So, Cost function for producing x units is
C(x) = 16000 +80x
Each unit is sold at $150 ( this is what i can see)
So, Revenue on sellling x units = 150*x
R(x) = 150x
Breakeven point occurs ater :C(x) = R(x)
So, 16000 +80x = 150x
70x = 16000
x = 1600/7 = 228 units (approximately)
Plugging to get dollar recieved to earn or spent for x = 1600/7 units = 150*1600/7 = $34285.71
Ordered pair ( 228, $34286) approximately
At equilibrium point : the money coming in thru sales is equal to money going out throuh manufacturing
