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Unformatted text preview: R ( x ) C ( x ) < 0 which indicates a LOSS. If x > x o then R ( x ) > C ( x ). Hence, P ( x ) = R ( x ) C ( x ) > 0 which indicates a PROFIT. Example: The XYZ Company has a fixed cost of 200,000, a production cost of $12 for each unit produced and a selling price of $20 for each unit produced. a. Find the break even point for the company. Section 1.4 Break-Even Analysis 2 b. If the company produces and sells 33,000 units, would it have a profit or loss? c. If the company produces and sells 40,000 units, what would be the profit?...
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This note was uploaded on 08/30/2010 for the course MATH Math 1313 taught by Professor Abdelnourahmed-zaid during the Fall '10 term at University of Houston.
- Fall '10