A company specializes in personalized team uniforms. It costs the company $15 to make each uniform along with their fixed costs at $640. The company plans to sell each uniform for $55.
The cost function for "u" uniforms C(u) is given by:
C(u) = Cost per uniform * u + Fixed Costs
C(u) = 15u + 640
Build the revenue function R(u) where u is the number of uniforms:
R(u) = Sale Price per uniform * u
R(u) = 55u
Calculate break even function:
Break even is where Revenue equals cost
C(u) = R(u)
15u + 640 = 55u
To solve for u, we type this equation into our search engine and we get:
u = 16
So we break even selling 16 uniforms
The cost function for "u" uniforms C(u) is given by:
C(u) = Cost per uniform * u + Fixed Costs
C(u) = 15u + 640
Build the revenue function R(u) where u is the number of uniforms:
R(u) = Sale Price per uniform * u
R(u) = 55u
Calculate break even function:
Break even is where Revenue equals cost
C(u) = R(u)
15u + 640 = 55u
To solve for u, we type this equation into our search engine and we get:
u = 16
So we break even selling 16 uniforms