A company that manufactures small canoes has a fixed cost of

A company that manufactures small canoes has a fixed cost of $16,000. It costs $40 to produce each canoe. The selling price is $80 per canoe. (In solving this exercise, let x represent the number of canoes produced and sold) Write the cost function. C(x) (Type an expression using x as the variable) Write the revenue function. R(x) (Type an expression using x as the variable) Determine the break-even point (Type an ordered pair. Do not use commas in large numbers.) This means that when the company produces and sells the break-even number of canoes there is loss money coming In than going out there is more money coming in than going out the money coming in aqua\'s the money going out there is not enough information

Solution

a. cost function ,C(x)= fixed price + price of x cance

        C(x)= 16000+ 40x

    

b. Revenue function,R(x)= price + number of cance= 80x

c. Break even point is the point at which

C(x)=R(x)

16000+40x=80x

16000=40x

x=400

It means the money coming in equals to money going out. Hence the correct option is C