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Question

Giaro Boats manufactures a popular recreational vessel, the Revolution. To plan for expanded production and increased labor costs, the company carefully tracks current costs and income. The fixed cost to produce this boat is $108,000\$ 108,000 and the variable costs are $28,000\$ 28,000 per boat. If the Revolution sells for $40,000\$ 40,000, (a) find the profit function and (b) determine how many boats must be sold for the company to break even.

Solution

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The goal of this task is to find the profit function for producing RevolutionRevolution vessels and to find out how many boat must be sold for the company to break even.

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