The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells small radios. more than how many radios must be produced and sold for the company to have a profit?
the company must produce and sell more than ? radios to have a profit.

ANSWER

The company must produce and sell more than 700 radios to have a profit.

EXPLANATION

The revenue function is


and the cost function is



The company will break even when total revenue is equal to the total cost.

This implies that,



We group similar terms to get,



This simplifies to,



Divide both sides by 8 to get,





The company breaks even by producing and selling 700 radios.

The company must produce and sell more than 700 radios to have a profit.

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