Concept explainers
(a)
To Find: To find the point of intersection from the given graph.
(a)

Answer to Problem 98E
The point of intersection is (2500,150000)
Explanation of Solution
Given information:Given the graph of cost and revenue of x units
In the graph, when no unit is produced that is when
When the cost and revenue lines are intersected at point (2500,150000) estimated. This point is called the break-even point.
Hence, the point of intersection estimated to be (2500,150000) which represents the point of intersection.
(b)
To Find: To find the possible values of x which represents profit and loss.
(b)

Explanation of Solution
Given information:Given the graph of cost and revenue of x units
Since the break-even point represents the point where the total cost C is equal to total revenue R. At this point where the number of units produced is 2500, this is the stage of neither profit nor loss.
Stage of loss- If the units produced is less than the 2500, than the cost is higher than the revenue and bear losses int his stage.
Stage of profit- If the units produced is more than the 2500, than the revenue is higher than the cost and earn profits at this stage.
Chapter 7 Solutions
PRECALCULUS W/LIMITS:GRAPH.APPROACH(HS)
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