Soda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 c

Discussion in 'Calculator Requests' started by math_celebrity, May 25, 2020.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    Soda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 cents of additional expense for each soda can made. Assuming all soda cans manufactured can be sold, find the break-even point.

    Calculate the revenue function R(c) where s is the number of sodas sold:
    R(s) = Sale Price * number of units sold
    R(s) = 50s

    Calculate the cost function C(s) where s is the number of sodas sold:
    C(s) = Variable Cost * s + Fixed Cost
    C(s) = 0.25s + 900

    Our break-even point is found by setting R(s) = C(s):
    0.25s + 900 = 50s

    We type this equation into our search engine and we get:
    s = 18.09
     

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