Question

The planning department of abstract office supplies has been asked to determine what is the company should introduce a new computer desk next year. The department estimates that $14,000 of new manufacturing equipment will need to be purchased and the cost of construction each desk will be $150. The department also estimates that the revenue for each desk will be $500.

A. Determine the revenue function R(x) from the sale of X desks. R(x)=

B. Determine the cost function C(x) for manufacturing X decks C(x)=

C.Find the number of tasks that must be sold for the company to break even

Answer 1

Answer:

The company needs to sell 40 desks to break even

Step-by-step explanation:

Application of Equations

There is virtually no limit to the possible situations where equations can help to find the solution of specific problems related to areas like economy, where one could need to establish some important indicators about the business.

B. The fixed cost for Abstract Office Supplies to sell a new computer desk is $14,000. Each desk will cost $150 to produce. The cost function to produce X desks is

C(x)=150x+14,000

A. The revenue for each desk is estimated at $500, for X desks will be

R(x)=500x

C. The company will break even when the cost and the revenue are the same. We'll find how many desks need to be sold for that to happen. We equate

C(x)=R(x)

Or equivalently

150x+14,000=500x

Rearranging

500x-150x=14,000

350x=14,000

Solving for x

x=14,000/350= 40

The company needs to sell 40 desks to break even