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A company that manufactures small canoes has a fixed cost of 18,000. It costs 100 to produce each canoe. The selling price is $400 per canoe. (In solving this exercise, let x represent the number of canoes produced and sold.) C(x)=18,000+100x R(x)=400x What is the breakeven point?
Mathematics
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Answer
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Step-by-step solution
4 stepsUnderstand the breakeven point.
The breakeven point is when the total cost equals the total revenue. This means .
Set the given cost and revenue functions equal to each other.
The cost function is .
The revenue function is .Solve the equation for .
Subtract from both sides of the equation:
Isolate by dividing both sides by 300.
The breakeven point is when 60 canoes are produced and sold.
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