Question

A company distributes college logo sweatshirts and sells them for $50\$ 50 each. The total cost function is linear, and the total cost for 100100 sweatshirts is $4360\$ 4360, whereas the total cost for 250250 sweatshirts is $7060\$ 7060.

(a) Write the equation for the revenue function.

(b) Write the equation for the total cost function.

( c ) Find the break-even quantity.

Solution

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Answered 1 year ago
Answered 1 year ago
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We have,

Revenue per unit =$ 50= \$~50
We are also given that the cost of 100100 units is $ 4360\$~4360 and the cost of 250250 units is $ 7060\$~7060.
Putting this information in a table:

Number of units Cost
100\qquad 100 43604360
250\qquad 250 70607060

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