The blue star publishing company produces daily "Star news". It costs $1200 per day to operate regardless of whether any newspaper are published. It costs 0.20 to publish each newspaper. Each daily newspaper has $850 worth of advertising and each newspaper is sold for $.30. Find the number of newspaper required to be sold each day for the Blue Star company to 'break even'. I.e all costs are covered.
Build our cost function where n is the number of newspapers sold:
C(n) = 1200+ 0.2n
Now build the revenue function:
R(n) = 850 + 0.3n
Break even is where cost and revenue are equal, so set C(n) = R(n)
1200+ 0.2n = 850 + 0.3n
Using our equation solver, we get:
n = 3,500
Build our cost function where n is the number of newspapers sold:
C(n) = 1200+ 0.2n
Now build the revenue function:
R(n) = 850 + 0.3n
Break even is where cost and revenue are equal, so set C(n) = R(n)
1200+ 0.2n = 850 + 0.3n
Using our equation solver, we get:
n = 3,500