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17 January, 01:09

A company sells horse shoes. The company's fixed and variable costs are modeled by the function C (x) = 5.6x+1,200. Their revenue is modeled by the function R (x) = 7.4x. If x represents the number of horse shoes, how many do they have to sell to break even? Round your answer up to the nearest whole number, and do not include units.

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  1. 17 January, 01:20
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    667 horse shoes

    Explanation:

    Given that,

    The company's fixed and variable costs are modeled by the function

    Cost function: C (x) = 5.6x + 1,200

    Revenue function: R (x) = 7.4x

    x ⇒ represents the number of horse shoes

    For break even,

    Cost = Revenue

    5.6x + 1,200 = 7.4x

    7.4x - 5.6x = 1,200

    1.8x = 1,200

    x = 667

    Therefore, they have to sell 667 horse shoes to break even.
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