Answer:
The Company AB must sell 116 computers to break even
Step-by-step explanation:
we have
[tex]R(x)=1.5x[/tex] -----> equation A
[tex]C(x)=145+\frac{1}{4}x[/tex] ----> equation B
where
C is the cost function
R is the revenue function
x is the number of computers sold
we know that
Break even is when the cost is equal to the revenue
so
equate equation A and equation B
[tex]1.5x=145+\frac{1}{4}x[/tex]
Solve for x
subtract 1/4x both sides
[tex]1.5x-\frac{1}{4}x=145\\1.5x-0.25x=145\\1.25x=145[/tex]
Divide by 1.25 both sides
[tex]x=116[/tex]
therefore
The Company AB must sell 116 computers to break even
Answer:
AB Computer Company must sell 116 computers to break even.
Step-by-step explanation:
1. Let's check the information given to resolve the case:
Cost Function: C (x) = 145 + 1/4x
Revenue Function: R (x) = 1.5x
Break even is the point in which total cost and total revenue are equal
2. Let's use this formula to find out the break even point and the number of computers necessary to sell:
Revenue - Cost = 0
1.5x - (145 + 1/4x) = 0
1.5x - 145 - 0.25x = 0 (1/4 = 0.25)
1.25x - 145 = 0
1.25x = 145 (Adding 145 to both sides of the equation)
x = 145/1.25 (Dividing by 1.25 at both sides)
x = 116
AB Computer Company must sell 116 computers to break even.
