Question

Give you experience in using the cost and revenue functions to find the break-even point. Austin Avenue Clothiers pays $57 each for sports coats and has a fixed monthly cost of$780. The store sells the coats for $79 each. (a) What is the linear cost–volume function? (b) What is the linear revenue function? (c) What is the break-even number of coats?

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a. The linear cost-volume function C(x)C(x) is the sum of the fixed cost and the total cost of producing xx sports costs. This is given by the equation:

C(x)=57x+780C(x)=57x+780

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