•Suppose that a company has fixed costs of 400 dollars and variable costs of
0.7x + 1450 dollars per unit, where
× is the number of units produced. Suppose further that the selling price of its product is
1550 - 0.25x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the
nearest one.
(a) Find the break-even points.
The larger number of units at which break-even occurs is
with corresponding revenue
dollars, and
The smaller number of units at which break-even occurs is
dollars.
with corresponding revenue
(b) Find the maximum revenue.