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Breaking Even The background for this exercise can be found in Exercises 15, 16, 17, and 18 in Section 1.4. A manufacturer of widgets has fixed costs of $700 per month, and the variable cost is $65 per thousand widgets (so it costs $65 to produce 1 thousand widgets). Let N be the number, in thousands, of widgets produced in a month Find a formula for the manufacturer’s total cost C as a function of N.
a. Find a formula for the manufacturer’s total cost C as a function of N.
b. The highest price p, in dollars per thousand widgets, at which N can be sold is given by the formula
c. Use your answers to parts a and b to find a formula for the profit p of this manufacturer as a function of N.
d. Use your formula from part c to determine the two break-even points for this manufacturer Assume that the manufacturer can produce at most 500 thousand widgets in a month.
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FUNCTIONS AND CHANGE COMBO
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