A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $18,060 and the variable costs (materials, shipping, etc.) are $9.45 per DVD. (A) Find the cost equation and the revenue equation. (B) How many DVDs must be sold each month for the company to break even? (C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret the regions between the lines to the left and to the right of the break-even point.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Question

23

A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs
(advertising, rent, etc.) are $18,060 and the variable costs (materials, shipping, etc.) are $9.45 per DVD.
(A) Find the cost equation and the revenue equation.
(B) How many DVDs must be sold each month for the company to break even?
(C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret
the regions between the lines to the left and to the right of the break-even point.
Transcribed Image Text:A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $18,060 and the variable costs (materials, shipping, etc.) are $9.45 per DVD. (A) Find the cost equation and the revenue equation. (B) How many DVDs must be sold each month for the company to break even? (C) Graph the cost and revenue equations in the same coordinate system and show the break-even point. Interpret the regions between the lines to the left and to the right of the break-even point.
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