A company produces very unusual CD's for which the variable cost is \( \$ 8 \) per CD and the fixed costs are \( \$ \) 45000. They will sell the CD's for \( \$ 40 \) each. Let \( x \) be the number of CD's produced. a. Write the total cost \( C \) as a function of the number of CD's produced. \( C=\$ \) b. Write the total revenue \( R \) as a function of the number of CD's produced. \( R=\$ \) c. Write the total profit \( P \) as a function of the number of CD's produced. \( P=\$ \) d. Find the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is Round to the nearest number of CDs.
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Bonus Knowledge
To find the functions and the breakeven point for the unusual CDs, let's go step by step! **a.** The total cost \( C \) includes both fixed and variable costs. The fixed costs are \( \$ 45000 \) and the variable cost is \( \$ 8 \) per CD. Therefore, the total cost function is: \[ C = 45000 + 8x \] **b.** The total revenue \( R \) is calculated by multiplying the selling price per CD (\$40) by the number of CDs produced \( x \). So the total revenue function is: \[ R = 40x \] **c.** The total profit \( P \) is found by subtracting total costs \( C \) from total revenue \( R \): \[ P = R - C = 40x - (45000 + 8x) = 32x - 45000 \] **d.** To find the breakeven point, we set profit \( P \) to zero: \[ 0 = 32x - 45000 \] Now solving for \( x \): \[ 32x = 45000 \] \[ x = \frac{45000}{32} \approx 1406.25 \] Rounding to the nearest whole number, the number of CDs which must be produced to break even is: **1406 CDs.**