Your firm is considering adding a product line. The accounting department has determined that the cost function for this new product will be C(x)= 30x + 2430 and the revenue function will be R(x) = 60x, where x is the number of units sold. Additionally, the sales department has determined that you reasonably can expect to sell around 63 units. You must decide whether to go ahead with the new product line. Find the break-even quantity: | Find the profit function: P(x) Make your decision: O Cancel the product line: producing these products is not profitable. O Proceed with the product line: the products are profitable and we can reasonably expect to meet our break-even quantity. O Cancel the product line: the quantity neeced to break even is more than our firm can reasonably expect to sell:
Your firm is considering adding a product line. The accounting department has determined that the cost function for this new product will be C(x)= 30x + 2430 and the revenue function will be R(x) = 60x, where x is the number of units sold. Additionally, the sales department has determined that you reasonably can expect to sell around 63 units. You must decide whether to go ahead with the new product line. Find the break-even quantity: | Find the profit function: P(x) Make your decision: O Cancel the product line: producing these products is not profitable. O Proceed with the product line: the products are profitable and we can reasonably expect to meet our break-even quantity. O Cancel the product line: the quantity neeced to break even is more than our firm can reasonably expect to sell:
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Your firm is considering adding a product line.
Transcribed Image Text:Your firm is considering adding a product line. The accounting department has determined that the
cost function for this new product will be C(x)= 30x + 2430 and the revenue function will be
R(1)
determined that you reasonably can expect to sell around 63 units. You must decide whether to go
ahead with the new product line.
= 60x, where x is the number of units sold. Additionally, the sales department has
Find the break-even quantity:
Find the profit function: P(x)
Make your decision:
O Cancel the product line: producing these products is not profitable.
O Proceed with the product line: the products are profitable and we can reasonably expect to
meet our break-even quantity.
OCancel the product line: the quantity needed to break even is more than our firm can
reasonably expect to sell
Expert Solution
Step 1
Consider the given information.
and
(a)
Calculate the values at the 63 of both the function.
And,
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