A manufacturer of 24hr variable timers has a monthly fixed

Marla Payton

Marla Payton

Answered question


A manufacturer of 24hr variable timers has a monthly fixed cost of 56000 and a production costs of 9 dollars for each timer manufactured the unit sell for 16 dollars each find the Break even point algebraically

Answer & Explanation



Beginner2021-12-28Added 35 answers

Step 1
Cost function C(x)=56000+9x.
Revenue function R(x)=16x.
The unit sell for 16 dollars.
Obtain the profit function as follows.
Profit function P(x)=R(x)C(x)
Step 2
Solving the break even point to equate the profit function as zero.
Thus, the break even point is (8000,0)
Step 3
The break even point is (8000, 0).
Karen Robbins

Karen Robbins

Beginner2021-12-29Added 49 answers

If the units sell for $16, and cost $9 to produce; then the profit on each unit is $7. Let n be the number of units needed to break even. Then:
n=8000 or (169)n56000=0
So, the break-even point is 8000 units; and the break-even revenue is $12800


Expert2022-01-04Added 613 answers

The break even point occurs when the income from sales equals the cost to make the product
Let x = number of timers
cost = 5000 + 8x
Income = 13x
set them equal to find the break even point
5000+8x = 13x
5000 = 5x
x = 1000(so 1000 timers must be sold each month to break even
Profit =Incomecost
Profit = 0 at the break even point
So that is the point where it crosses the x axis
(1000, 0)

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