Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 7 - Algebra: Graphs, Functions, and Linear Systems - 7.3 Systems of Linear Equations in Two Variables - Exercise Set 7.3 - Page 445: 52

Answer

The number of radios must be produced and sold is greater than\[500\].

Work Step by Step

The company produced and sold radios should be greater than for the break-even point. The revenue function is \[R\left( x \right)=50x\]and \[C\left( x \right)=10000+30x\]. The break-even point occurs where the revenue and cost function intersect. So, to calculate the number of produced and sold radios for the break-even point \[R\left( x \right)\] will be equal to\[C\left( x \right)\]. Therefore, \[\begin{align} & R\left( x \right)=C\left( x \right) \\ & 50x=10000+30x \\ & 50x-30x=10000 \\ & 20x=10000 \end{align}\] Or: \[\begin{align} & x=\frac{10000}{20} \\ & x=500 \end{align}\] Hence, the number of radios must be produced and sold is more than\[500\].
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