# Thread: problem solving

1. ## problem solving

A Manufacturer sells a product at \$8.70 per unit, selling all produced. The fixed cost is \$2150 and the variable cost is \$7.00 per unit.

what is the level of production will there be a loss of \$1200?

Thanks

2. Originally Posted by happy8588
A Manufacturer sells a product at \$8.70 per unit, selling all produced. The fixed cost is \$2150 and the variable cost is \$7.00 per unit.

what is the level of production will there be a loss of \$1200?

Thanks
Let $n$ be the number of units.

You want to find Income - Expenditure = -1200

Can you set up an equation for this in terms of n?

3. The equation that i used was c(x)=7.00x+2150 and R(x)=8.70x
giving an equation of p(x)=1.70x-2150

then i plugged 1200=1.70x-2150 and i got 1970.588235 which is not the correct answer
please help.

4. Originally Posted by happy8588
The equation that i used was c(x)=7.00x+2150 and R(x)=8.70
giving an equation of p(x)=1.70x-2150

then i plugged 1200=1.70x-2150 and i got 1970.588235 which is not the correct answer
please help.
Wouldn't $R(x) = 8.70x$? Since the way you've written it R(x) is constant and does not depend on x! Although I suspect that's a typo since it's correct later on

You have p(x) correct but you need to set it equal to -1200 instead of 1200 since the question refers to a loss and p(x) is a function of profit per unit (and a loss = negative gain)

5. I made a mistake in typing r(x)=8.70x
therefore, i should use 1.70x-2150=-1200 and solve it like this: 1.70x=-1200+2150 then divide by 1.70 to get the answer of 558.8235294?

6. Yes, that is correct.