A company that manufactures small canoes has a fixed cost of

A company that manufactures small canoes has a fixed cost of S18,000. It costs S100 to produce each canoe. The selling price is $400 per canoe. (In solving this exercise, let x represent the number of canoes produced and sold.) Write the cost function. C(x) = Q (Type an expression using x as the variable.) Write the revenue function. R(x) = Q (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 the money coming in equals the money going out. there is less money coming in than going out. there is more money coming in than going out. there is not enough information.

Solution

(a) Let \'x\' be the number of small canoes.

Total cost, C(x) = fixed cost + variable cost * x = 18000+100x

(b) Revenue function, R(x) = 400 x

(c) For break-even point, we set C(x) = R(x).

18000 + 100 x= 400 x

Subtract 100x from both the sides,

18000 = 300 x

Divide both sides by 300,

x = 60

For finding break-even point we have set R(x)= C(x).

It means that, \"the money coming in equals the money going out\".