A toy company makes "Teddy Bears". The company spends $1500 for factory expenses plus $8 per bear. T

Discussion in 'Calculator Requests' started by math_celebrity, Oct 7, 2020.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A toy company makes "Teddy Bears". The company spends $1500 for factory expenses plus $8 per bear. The company sells each bear for $12.00 each. How many bears must this company sell in order to break even?

    Set up the cost function C(b) where b is the number of bears:
    C(b) = Cost per bear * b + factory expenses
    C(b) = 8b + 1500

    Set up the revenue function R(b) where b is the number of bears:
    R(b) = Sale Price per bear * b
    R(b) = 12b

    Break-even is where cost equals revenue, so we set C(b) equal to R(b) and solve for b:
    C(b) = R(b)
    8b + 1500 = 12b

    To solve for b, we type this equation into our search engine and we get:
    b = 375
     

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