Question

I’m trying to understand how to solve this Part 1

Answer 1

Given:

Cost: y = 0.4x + 32

Revenue: y = 1.2x

Step 01: To determine where cost = revenue, y from cost by y from revenue (1.2 x).

$\begin{gathered} y=0.4x+32 \\ 1.2x=0.4x+32 \end{gathered}$

Step 02: Solve for x.

To do it, first, subtract 0.4x from both sides:

$\begin{gathered} 1.2x-0.4x=0.4x+32-0.4x \\ 0.8x=32 \end{gathered}$

Now, divide both sides by 0.8:

$\begin{gathered} \frac{0.8x}{0.8}=\frac{32}{0.8} \\ x=40 \end{gathered}$

Step 03: Find y.

To find y, choose one equation and substitute x by 40.

Let's choose the equation for revenue.

$\begin{gathered} y=1.2x \\ y=1.2*40 \\ y=48 \end{gathered}$

Answer: The point in which Revenue = cost is the point (40, 48).