Fixed cost 500 marginal cost 8 item sells for 30

Discussion in 'Calculator Requests' started by math_celebrity, Jul 30, 2018.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    fixed cost 500 marginal cost 8 item sells for 30.

    Set up Cost Function C(x) where x is the number of items sold:
    C(x) = Marginal Cost * x + Fixed Cost
    C(x) = 8x + 500

    Set up Revenue Function R(x) where x is the number of items sold:
    R(x) = Revenue per item * items sold
    R(x) = 30x

    Set up break even function (Cost Equals Revenue)
    C(x) = R(x)
    8x + 500 = 30x

    Subtract 8x from each side:
    22x = 500

    Divide each side by 22:
    x = 22.727272 ~ 23 units for breakeven
     

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