Soda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 c | MathCelebrity Forum

Soda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 c

math_celebrity

Administrator
Staff member
Soda cans are sold in a local store for 50 cents each. The factory has $900 in fixed costs plus 25 cents of additional expense for each soda can made. Assuming all soda cans manufactured can be sold, find the break-even point.

Calculate the revenue function R(c) where s is the number of sodas sold:
R(s) = Sale Price * number of units sold
R(s) = 50s

Calculate the cost function C(s) where s is the number of sodas sold:
C(s) = Variable Cost * s + Fixed Cost
C(s) = 0.25s + 900

Our break-even point is found by setting R(s) = C(s):
0.25s + 900 = 50s

We type this equation into our search engine and we get:
s = 18.09
 
Back
Top