The cost of producing a number of items is x is given by C = mx + b, in which b is the fixed cost and m is the variable cost (the cost of the producing one more item).
(a) If the fixed cost is $40 and the variable cost is $10 per item, write a cost equation for producing x items.
My answer: C = 10x + 40
(b) Graph your cost function.
My answer: hard to show it here but my thinking is 10 is on the x axis and the 40 on the y. the lines goes from the 10 up to the right till it reaches 40 on the y.
(c) The revenue generated from the sale of x items is given by R = 50x. Graph the revenue equation on the same set of axes as the cost equation.
Here I am stumped.
(d) How many items much be produced for the revenue to equal the cost (the break-even point)?
(a) If the fixed cost is $40 and the variable cost is $10 per item, write a cost equation for producing x items.
My answer: C = 10x + 40
(b) Graph your cost function.
My answer: hard to show it here but my thinking is 10 is on the x axis and the 40 on the y. the lines goes from the 10 up to the right till it reaches 40 on the y.
(c) The revenue generated from the sale of x items is given by R = 50x. Graph the revenue equation on the same set of axes as the cost equation.
Here I am stumped.
(d) How many items much be produced for the revenue to equal the cost (the break-even point)?