find the break even point for company z which sells all it p
find the break even point for company z which sells all it produces if the variable cost per unit is $2, fixed costs are $1050, and revenue y= 50q , where q is the number of units of output produced
Solution
Cost of producing q units of the product, C=1050+2q
Revenue, y=50sqrt{q}
For breakeven we need, R=C ie point at which the cost to produce ie recovered
This gives the equation
1050+2q=50sqrt{q}
Solving gives no real solutions. Hence there is no break even point
