Q5 Producing x units of tacos costs Cx 5x 20 revenue is Rx

Q5. Producing x units of tacos costs C(x) -5x + 20; revenue is R(x)- 15x, where C(x) and R(x) are in dollars. o What is the breakeven quantity? b) What is the profit from 100 units? ) How many units will produce a profit of $500?

Solution

Breakeven quantity means, C(x)=R(x)

5x+20=15x

20=10x

x=2

b. Profit,P(x)=R(x)-C(x)= 15x-5x-20= 10x -20

P(100)= 10(100)-20 =1000-20 =980

c. 500 =10x-20

10x=520

x=52