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
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.
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