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5) A small manufacturer produces special order DVDs for individuals and businesses. The materials and labor costs for each DVD is $0.25. The fixed costs of production are $525. The manufacturer charges a client $5.00 for each DVD. Suppose x denotes the number of DVDs produced and sold. Use the information above to find the following

a) A linear equation which calculates the cost of producing x DVDs.

b) A linear equation which calculates the revenue realized from the sale of x DVDs.

c) A linear equation which determines the profit realized from the production and sale of x DVDs.

d) What is the profit or loss realized from the sale of 125 DVDs?

e) What is the break-even point for this product?

f) Suppose a client wishes to purchase 150 DVDs at a discount. What is the minimum price the manufacturer must charge to break even on the order?

Solution Preview

5) A small manufacturer produces special order DVDs for individuals and businesses. The materials and labor costs for each DVD is $0.25. The fixed costs of production are $525. The manufacturer charges a client $5.00 for each DVD. Suppose x denotes the number of DVDs produced and sold. Use the information above to find the following

a) ...

Solution Summary

Types of linear equations are reinforced in this solution.

$2.19