This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: If x > x o then R ( x ) > C ( x ). Hence, P ( x ) = R ( x ) – C ( x ) > 0 which indicates a PROFIT. Example 1: If 200 4 ) ( + = x x C and x x R 6 ) ( = , what is the break even point? 3 Example 2: If the profit function to produce x items is 600 12 ) (-= x x P , what is the break even quantity? Example 3: Find the break-even quantity and break-even revenue if 000 , 44 40 ) ( + = x x C and x x R 150 ) ( = . Example 4: 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. b. If the company produces and sells 28,000 units, would it have a profit or loss? c. If the company produces and sells 40,000 units, what would be the profit?...
View Full Document
This note was uploaded on 02/21/2012 for the course MATH 1313 taught by Professor Constante during the Spring '08 term at University of Houston.
- Spring '08