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?
1. The break even point: the profit = cost
22.50*x = 18 x + 150
x = 33.33
The solution provides calculations around the break-even point.