Math 1313
Homework 2
Section 1.4
1
Use the following problem to answer questions 1 – 5
The cost for producing a certain product is $65 each.
The fixed costs are $120,000.
The
selling price for each product is $90.
1.
What is the cost function?
a.
C(x) = 65x – 120,000
b.
C(x) = 65x
c.
C(x) = 90x + 120,000
d.
C(x) = 90x – 120,000
e.
C(x) = 65x + 120,000
f.
None of the above.
2.
What is the profit function?
a.
P(x) = 90x – 120,000
b.
P(x) = 25x – 120,000
c.
P(x) = 65x + 120,000
d.
P(x) = 25x + 120,000
e.
P(x) = 90x + 120,000
f.
None of the above.
.
3.
What is the break-even quantity?
a.
1,333
b.
4,800
c.
1,846
d.
5,000
e.
3,500
f.
None of the above
4.
What is the break-even revenue?
a.
$312,000
b.
$86,667
c.
$432,000
d.
$119,970
e.
$450,000
f.
None of the above
5.
What is the break-even point?
a.
(4,800, 0)
b.
(4,800, 432,000)
c.
(1,846, 0)
d.
(1,333, 0)
e.
(1,333, 86,667)
f.
None of the above.