A manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produce

Discussion in 'Calculator Requests' started by math_celebrity, Feb 10, 2018.

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  1. math_celebrity

    math_celebrity Administrator Staff Member

    A manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produced. The product sells for $10/unit.

    Set up cost function where u equals each unit produced:
    C(u) = 7u + 25,500

    Set up revenue function
    R(u) = 10u

    Break Even is where Cost equals Revenue
    7u + 25,500 = 10u

    Plug this into our equation calculator to get u = 8,500
     

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