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    Calculations Around the Break-Even Point

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    A firm producing poultry feed finds that the total cost C in dollars for producing and selling x units is given by
    C = 18 x + 150. Management plans to charge $22.50 per unit for the feed.

    1. What is the break-even cost?
    2. What is the profit for 75 units of feed sold?
    3. How many units must be sold to produce a profit of $1020?

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    Solution Preview

    1. The break even point: the profit = cost

    22.50*x = 18 x + 150
    x = 33.33

    The ...

    Solution Summary

    The solution provides calculations around the break-even point.