# More Finite Math help

• Jan 25th 2009, 04:41 PM
johnewton
More Finite Math help
Okay so I stumbled upon this question and I think I may be on the right track but request backup.. :)

A store handles a specialty item that has a marginal cost of \$24 and a fixed cost of \$360. The sales required to break even are 75 items.

A) Find the linear cost function
My answer was --> c(x) = 24+360

B) Find the linear revenue function
My answer was --> R(x) = px -->R(x) = 384x

Does this look correct?
• Jan 25th 2009, 05:30 PM
Jhevon
Quote:

Originally Posted by johnewton
Okay so I stumbled upon this question and I think I may be on the right track but request backup.. :)

A store handles a specialty item that has a marginal cost of \$24 and a fixed cost of \$360. The sales required to break even are 75 items.

A) Find the linear cost function
My answer was --> c(x) = 24+360

nope, it should be 24x + 360

Quote:

B) Find the linear revenue function
My answer was --> R(x) = px -->R(x) = 384x

Thank you math scholars!! (Rock)
nope.

break even means $C(x) = R(x)$

so, the problem says $C(75) = R(75)$

now, $C(75) = 2160$, and $R(x) = ax \implies R(75) = 75a$

now, set up the equation to solve for $a$, then you can find your revenue funciton
• Jan 25th 2009, 05:31 PM
skeeter
Quote:

Originally Posted by johnewton
Okay so I stumbled upon this question and I think I may be on the right track but request backup.. :)

A store handles a specialty item that has a marginal cost of \$24 and a fixed cost of \$360. The sales required to break even are 75 items.

A) Find the linear cost function
My answer was --> c(x) = 24x+360

did you forget the x ?

B) Find the linear revenue function
My answer was --> R(x) = px -->R(x) = 384x

R(x) = C(x) at the break even point

p = selling price

75p = 24(75) + 360

p = 28.80

R(x) = px = 28.80x

ok?
• Jan 25th 2009, 05:33 PM
johnewton
I
thank you for the help!!
• Jan 25th 2009, 05:39 PM
johnewton
Got it
to solve for "A" you just divide 2160 by 75 which gives you 28.80. I love this website! Thank you Jhevon and Skeeter!
• Jan 25th 2009, 05:44 PM
Jhevon
Quote:

Originally Posted by johnewton
to solve for "A" you just divide 2160 by 75 which gives you 28.80.

yup, just as skeeter did

Quote:

I love this website!
....um, we...love you too?? ...ok, that was awkward

Quote:

Thank you Jhevon and Skeeter!
you're welcome (Sun)

take care (Hi)
• Jan 25th 2009, 05:48 PM
johnewton
Umm yeah