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14 November, 09:35

A company produces very unusual CD's for which the variable cost is $ 17 per CD and the fixed costs are $ 30000. They will sell the CD's for $ 63 each. Let x be the number of CD's produced.

Write the total cost C as a function of the number of CD's produced.

C = $

Write the total revenue R as a function of the number of CD's produced.

R = $

Write the total profit P as a function of the number of CD's produced.

P = $

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

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Answers (1)
  1. 14 November, 09:51
    0
    Let we assume the number of CD produced be X

    So, the total cost would be

    C = Fixed cost + variable cost * number of CD produced

    = $30,000 + $17X

    For total revenue, it would b

    R = $63X

    For total profit, it would be

    P = Selling cost per CD * number of CD produced - variable cost per CD * number of CD produced - fixed cost

    = $63X - $17X - $30,000

    = $46X - $30,000

    For number of CD, it would be

    0 = $46X - $30,000

    X = $30,000 : $46

    = 652 CD for break-even
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