Given the following notations write a formula for x the brea

Given the following notations, write a formula for x, the break-even sales level. SP = Selling price per unit FC = Total fixed cost VC = Variable cost per unit The demand for your hand-made skateboards, in weekly sales, is q = -2p + 700 if the selling price is $p. You are prepared to supply q = 3p - 400 per week at the price $p. What price should you sell your skateboards for so that there is neither a shortage nor a surplus?

Solution

9) for breakeven

total cost = total revenue

=>variablecost +fixed cost = total revenue

=>(VC)x +(FC)=(SP)x

=> (FC)=(SP)x-(VC)x

=>(SP)x-(VC)x =(FC)

=>x =(FC)/[(SP)-(VC)]

10)given

demand q=-2p+700

supply q=3p-400

for neither shortage nor surplus

demand =supply

-2p+700=3p-400

3p+2p=700+400

5p=1100

p=220

price at which skateboard should be sold =220$