Business and finance. If the inventor in exercise 53 charges $4 per unit, then her
profit for producing and selling x units is given by the function
P(x) = 2.25x - 7000
(a) What is her profit if she sells 2000 units?
(b) What is her profit if she sells 5000 units?
(c) What is the break-even point for sales?
a) Just plug in 2000 for x
Originally Posted by harry
we have Profit from selling 2000 units:
P(2000) = 2.25(2000) - 7000
............= -2500...........she loses money, $2500 to be exact
b) Just plug in 5000 for x
we have Profit from selling 5000 units:
P(5000) = 2.25(5000) - 7000
............= 4250 .............she makes a profit of $4250
c) Never did business math but i suppose the break even point of sale is the number of units sold such that the profit is zero. that is the revenue equals the cost of production, so they break even. so we need to find an x such that P(x) = 0
set P(x) = 0
=> 2.25x - 7000 = 0
=> 2.25x = 7000
=> x = 7000/2.25
=> x = 3111.11