A small plant manufacturing riding mowers. The plant has fixed costs (leases, insurance, etc.) of $48,182 per day and variable costs (labor, materials, etc.) of $1,333 per mower produced. The mowers are sold for $1,852 each. The resulting cost and revenue equations are y = 48,182 + 1,333 æ Cost equation y = 1,852 x Revenue equation %3D where a is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars. How many mowers must be manufactured and sold each day for the company to break even? mowers. Round to the nearest mower.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter7: Systems Of Equations And Inequalities
Section7.1: Systems Of Linear Equations: Two Variables
Problem 2SE: If you are performing a break-even analysis for a business and their cost and revenue equations are...
Question

Break-Even Analysis

Any manufacturing company has costs which include fixed costs such as plant overhead, product design, setup, and promotion; and variable costs that depend on the number of items produced.  The revenue is the amount of money received from the sale of its product.  The company breaks even if the revenue is equal to the cost.

 

QUESTION IS ATTACHED TO THE IMAGE BELOW THANKS!

 

A small plant manufacturing riding mowers. The plant has fixed costs (leases,
insurance, etc.) of $48,182 per day and variable costs (labor, materials, etc.) of $1,333
per mower produced. The mowers are sold for $1,852 each. The resulting cost and
revenue equations are
y = 48,182 + 1,333 x
Cost equation
y = 1,852 x
Revenue equation
where x is the total number of mowers produced and sold each day. The daily costs
and revenue are in dollars.
How many mowers must be manufactured and sold each day for the company to
break even?
mowers. Round to the nearest mower.
Transcribed Image Text:A small plant manufacturing riding mowers. The plant has fixed costs (leases, insurance, etc.) of $48,182 per day and variable costs (labor, materials, etc.) of $1,333 per mower produced. The mowers are sold for $1,852 each. The resulting cost and revenue equations are y = 48,182 + 1,333 x Cost equation y = 1,852 x Revenue equation where x is the total number of mowers produced and sold each day. The daily costs and revenue are in dollars. How many mowers must be manufactured and sold each day for the company to break even? mowers. Round to the nearest mower.
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