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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. 3 Example: If 200 4 ) ( + = x x C and x x R 6 ) ( = , what is the break even point? Example: If the profit function to produce x items is 600 12 ) (= x x P , what is the break even point? 4 Example 1: Find the breakeven quantity and breakeven revenue if ( ) 40 44,000 C x x = + and x x R 150 ) ( = . 5 Example 2: 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?...
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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
 CONSTANTE
 Math

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