The Naturally Made Bath and Body store pays $550 a month for rent and utilities. The average cost for its products to be manufactured is about $3.00 an item. If the average price for a product sold in the store is $5.50, what will the break-even point be? Let x represent the number of products sold. The break-even point occurs when the cost function equals the revenue function. 550 + 3.00x = 5.50x Naturally Made needs to sell products to break even. The cost or revenue when it sells the break-even number of products will be $ .
Answers
Answer:
The cost function that represents the situation is
✔ C(x) = 550 + 3.00x
The revenue function that represents the situation is
✔ R(x) = 5.50x
Step-by-step explanation:
did it on edgenuity.
sorry if its wrong.
The cost or revenue when it sells the break-even number of products is $1110
GIVEN
The Naturally Made Bath and Body store pays $550 a month for rent and utilities. The average cost for its products to be manufactured is about $3.00 an item. If the average price for a product sold in the store is $5.50, what will the break-even point be? Let x represent the number of products sold. The break-even point occurs when the cost function equals the revenue function. 550 + 3.00x = 5.50x Naturally Made needs to sell products to break even.
TO FIND
The cost or revenue when it sells the break-even number of products.
SOLUTION
we can simply solve the above problem as follows;
We know that,
Profit = Revenue - Cost
Cost = Fee + Cost per item.
Cost = 500 + 3x
Break-even point is when the profit is zero.
Therefore,
Revenue = cost
Therefore,
5.5x = 500 + 3x
2.5x = 500
x = 500/2.5
x = 200
The break-even point = x = 200
Cost = 5.5 × 200 = 1110
Hence, The cost or revenue when it sells the break-even number of products is $1110
#SPJ2