Answer:
Part A: C(x) = 0.068x+0.8
Part B: 1.28
Part C: 9.76
Explanation:
Part A:
The cost C equals
cost = revenue - profit
[tex]C(x)=R(x)-P(x)[/tex]
which is
[tex]C(x)=0.15x-(0.082x-0.8)[/tex][tex]C(x)=0.15x-0.082x+0.8[/tex][tex]\boxed{C\mleft(x\mright)=0.068x+0.8}[/tex]
Part B:
The cost of producing 7 units is found by putting in x = 7 into the above equation. This gives
[tex]C(7)=0.068(7)+0.8[/tex][tex]C(7)=1.28[/tex]
Hence, the cost of producing 7 items is 1,28 million dollars.
Part C:
To break even, the cost must equal the revenue
[tex]R(x)=C(x)[/tex]
or
[tex]0.15x=0.068x+0.8[/tex]
subtracting 0.068 from both sides gives
[tex]0.082x=0.8[/tex]
dividing both sides by 0.082 gives
[tex]\boxed{x=9.76}[/tex]
which is the break-even point
