The school yearbook costs $15 per book to produce with an overhead of $5500. The yearbook sells for

Discussion in 'Calculator Requests' started by math_celebrity, Aug 11, 2020.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    The school yearbook costs $15 per book to produce with an overhead of $5500. The yearbook sells for $40. Write a cost and revenue function and determine the break-even point.

    Calculate cost function C(b) with b as the number of books:
    C(b) = Cost per book * b + Overhead
    C(b) = 15b + 5500

    Calculate Revenue Function R(b) with b as the number of books:
    R(b) = Sales Price per book * b
    R(b) = 40b

    Calculate break even function E(b):
    Break-even Point = Revenue - Cost
    Break-even Point = R(b) - C(b)
    Break-even Point = 40b - 15b - 5500
    Break-even Point = 25b - 5500

    Calculate break even point:
    Break-even point is where E(b) = 0. So we set 25b - 5500 equal to 0
    25b - 5500 = 0

    To solve for b, we type this equation into our search engine and we get:
    b = 220
     

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