- Once they hit 26 items they break even again.
- The worst case scenario is that they produce 13 items, as they will have a profit of -50 dollars because the minimum point is at (18, -35).
- Also, the first root tells us that the profit will be 0 when 0 products are sold.
What is profit?
In Economics, profit can be defined as a measure of the amount of money generated when the selling price is deducted from the cost price of a good or service, which is usually provided by producers.
This ultimately implies that, all producers of any product generally work to maximize their profits and make them as large as possible, in order to enable them break even and successful.
Based on the information provided, we can logically deduce that this function has its roots at x = 0 and x = 26 and its vertex is a minimum. Thus, this quadratic function which describes the relationship between the number of products produced and the overall profit margin is an increasing function:
- 0 < x < 26, f(x) < 0, which implies a negative profit is generated when between 0 and 26 items are produced.
- x > 26, f(x) > 0, which implies a positive profit is generated when more than 26 items are produced.
- x is equal to 26 is the break even point.
Therefore, once they hit 26 items they break even again. The worst case scenario is that they produce 13 items, as they will have a profit of -50 dollars because the minimum point is at (18, -35). Also, the first root tells us that the profit will be 0 when 0 products are sold.
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