A manufacturer has a monthly fixed cost of $100,000 and a production cost of $10 for each unit produ

Discussion in 'Calculator Requests' started by math_celebrity, Sep 15, 2019.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A manufacturer has a monthly fixed cost of $100,000 and a production cost of $10 for each unit produced. The product sells for $22/unit.

    The cost function for each unit u is:
    C(u) = Variable Cost * Units + Fixed Cost
    C(u) = 10u + 100000

    The revenue function R(u) is:
    R(u) = 22u

    We want the break-even point, which is where:
    C(u) = R(u)
    10u + 100000 = 22u

    Typing this equation into our search engine, we get:
    u =8333.33
     

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