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Math Help - Solving problems

  1. #1
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    Solving problems

    My friend is having difficulty in a question. She showed me and I can't quite nut it out now I've gone curious and would like to no the answer and how you do it.

    The Question is:

    A manufacturer sells a particular prodcut for $40 per unit. The manufacturer's costs for prodcuing the units consist of a fixed $5000 plus a cost of $22 per unit. If the manufacturer produces and sells x units find

    a) The value of the x for the manufacturer to at least 'break even'. (Aussume that x must take interger values)

    Thank you.
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  2. #2
    Grand Panjandrum
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    Quote Originally Posted by atom360 View Post
    My friend is having difficulty in a question. She showed me and I can't quite nut it out now I've gone curious and would like to no the answer and how you do it.

    The Question is:

    A manufacturer sells a particular prodcut for $40 per unit. The manufacturer's costs for prodcuing the units consist of a fixed $5000 plus a cost of $22 per unit. If the manufacturer produces and sells x units find

    a) The value of the x for the manufacturer to at least 'break even'. (Aussume that x must take interger values)

    Thank you.
    At break even revenue=costs.

    R=40x

    C=5000+22x

    hence for break even:

    40x=5000+22x

    Now solve for x, if this is not an integer then you will need the next larger integer.

    CB
    Last edited by CaptainBlack; March 13th 2009 at 11:48 PM. Reason: correted typo reported by u2 wa
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