Question

The revenue function for a real estate agency is based on a percentage of the amount of monthly sales made by the aplus the fixed monthly costs. Both functions are shown below, where is the the dollar amount of the monthly sales m• Revenue function: f (x) = 0.03x• Cost function: g(x) = 0.015x + 4,600-The agency will break even when the revenue function is equal to the cost function. For the agency to break even, whaABetween $0 and $2,000BBetween $4,500 and $4,700сBetween $153 000 and $155,000DBetween $305.000 and $307,000

Answer 1

Given that:

$\begin{gathered} \text{Revenue function,f}(x)=0.03x \\ \text{Cost function, g(x) = 0.015x+4600} \end{gathered}$

To find the break even point, equate f(x) and g(x) and find x.

$\begin{gathered} 0.03x=0.015x+4600 \\ 0.015x=4600 \\ x=\frac{4600}{0.015} \\ =306.667 \end{gathered}$

The break even point kies between 305,000 and 307,000. The last option is correct.