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
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