The cost to produce x units of lipstick is c(x)=60x+10000 while the revenue is R(x)=85x Find: a. Break-even point b. Revenue at break-even point

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The cost to produce x unit of lipstick is given as c(x) = 60x + 10000 and the revenue is r(x) = 85x

If the break even is at N

c(N) = r(N)

=> 60*N + 10000 = 85*N

=> 25N = 10000

=> N = 10000/25

=> N = 400

The revenue at break even is 85*400 = 34000

Break-even point = 400 lipsticks.

Revenue at break-even = 34000.

Approved by eNotes Editorial Team
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