A manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produce | MathCelebrity Forum

A manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produce

math_celebrity

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A manufacturer has a monthly fixed cost of $25,500 and a production cost of $7 for each unit produced. The product sells for $10/unit.

Set up cost function where u equals each unit produced:
C(u) = 7u + 25,500

Set up revenue function
R(u) = 10u

Break Even is where Cost equals Revenue
7u + 25,500 = 10u

Plug this into our equation calculator to get u = 8,500
 
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