Explanation Given Information: The provided notations are: S P = Selling Price per unit, B E = Breakeven Sales level in units and V C = variable cost per unit. Consider the provided information, The provided notations are: S P = Selling Price per unit, B E = Breakeven Sales level in units and V C = variable cost per unit. The revenue is basically the amount that is obtained by selling x number of units at a particular selling price. Thus, the revenue function is, R ( x ) = S P × x = S P x The cost of the function is the sum of variable cost which depends on x and the fixed cost as, C ( x ) = m x + b Thus, the cost function is, C ( x ) = V C x + F C The profit is basically the amount that is obtained by subtracting the cost price from selling price. Therefore, evaluate the profit function by subtracting the cost function from the revenue function as, P ( x ) = R ( x ) − C ( x ) The break-even point is basically the number of items sold at which the breakeven occurs. Where breakeven means the number at which neither profit nor loss occurs

7th Edition

ISBN: 9781337280426

Author: Stefan Waner, Steven Costenoble

Publisher: Cengage Learning

See similar textbooks

Concept explainers

Equations and Inequations

Equations and inequalities describe the relationship between two mathematical expressions.

Linear Functions

A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.

Videos

Question

Chapter 1.2, Problem 30E

To determine

The formula for the total fixed cost using the following notations: SP= Selling Price per unit, BE= Breakeven Sales level in units and VC= variable cost per unit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 1.2, Problem 29E

Chapter 1.2, Problem 31E

Students have asked these similar questions

One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey. Preference Male Female TOTAL Prefers dogs \[36\] \[20\] \[56\] Prefers cats \[10\] \[26\] \[36\] No preference \[2\] \[6\] \[8\] TOTAL \[48\] \[52\] \[100\] problem 1 Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal. \[P\left(\text{prefers dogs}\right)=\] Incorrect Check Hide explanation Preference Male Female TOTAL Prefers dogs \[\blueD{36}\] \[\blueD{20}\] \[\blueE{56}\] Prefers cats \[10\] \[26\] \[36\] No preference \[2\] \[6\] \[8\] TOTAL \[48\] \[52\] \[100\] There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.

For the spinner below, assume that the pointer can never lie on a borderline. Find the following probabilities. (enter the probabilities as fractions)

Evaluate the following integrals as they are written

Chapter 1 Solutions

Finite Mathematics

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

The formula for the total fixed cost using the following notations: S P = Selling Price per unit, B E = Breakeven Sales level in units and V C = variable cost per unit.

Solution Summary: The author explains the formula for total fixed cost: FC=(SP-VC)BE. The revenue is the amount that is obtained by selling x number of units at a particular selling price.

Concept explainers

Videos

The formula for the total fixed cost using the following notations: SP= Selling Price per unit, BE= Breakeven Sales level in units and VC= variable cost per unit.

Want to see the full answer?

Chapter 1 Solutions