watch the video and then solve the problem given below. click here to watch the video a company sells a…

watch the video and then solve the problem given below. click here to watch the video a company sells a chair for $450. it costs them $350 to make each chair, plus fixed costs for operation of $20,000. write the cost and revenue functions. cost = revenue = (type expressions using x as the variable.) what is the number of chairs that must be sold to break even? x = chairs

watch the video and then solve the problem given below. click here to watch the video a company sells a chair for $450. it costs them $350 to make each chair, plus fixed costs for operation of $20,000. write the cost and revenue functions. cost = revenue = (type expressions using x as the variable.) what is the number of chairs that must be sold to break even? x = chairs

Answer

Explanation:

Step1: Write the cost function

The cost function (C(x)) has a fixed cost and a variable cost. The variable cost is (350x) (since it costs $350 per chair) and the fixed cost is $20000. So, (C(x)=350x + 20000).

Step2: Write the revenue function

The revenue function (R(x)) is based on the selling price per unit. Since each chair is sold for $450, (R(x)=450x).

Step3: Find the break - even point

At the break - even point, (R(x)=C(x)). So, (450x=350x + 20000). Subtract (350x) from both sides: (450x-350x=350x + 20000-350x). This gives (100x=20000). Divide both sides by 100: (x=\frac{20000}{100}).

Answer:

Cost = (350x + 20000) Revenue = (450x) (x = 200) chairs