You invest in a new play The cost includes an overhead of 2

You invest in a new play. The cost includes an overhead of $ 28, 750. plus production costs of $ 2500 per performance A sold-out performance brings in $ 3125. (In solving this exercise, let x represent the number of sold-out performances.) a. Write the cost function, C. b. Write the revenue function, R. c. Determine the break-even point. Describe what this means. a. Write the cost function, C. C (x) = (Type an expression using x as the variable.) b. Write the revenue function. R R(x) (Type an expression using x as the variable.) c. Determine the break-even point. sold-out performances Describe what this means A. The point where the cost and overhead cost are equal. B. The point where the cost and revenue are equal. C. The point where revenue and production cost are equal D. The point where revenue and overhead cost are equal.

Solution

Let no. of sold out performances be x

a) Cost function : C(x) = 28750 + 2500x

b) Revenue function : R(x) = 3125x

c) Breakeve point comes when : C(x) = R(x)

28750 +2500x = 3125x

28750 = 625x

x = 46 no. of sold out perfomances

B) Point where cost and reveue are equal