University:
Fresno Pacific University
Course:
ECON 301 | Economics in Business
Academic year:

2023
Views:

198

Pages:

2
Author:

agatoary6zt

**Applications in Business and Economics** C = mx + b where C = Cost m = variable cost b = fixed cost R = px where R = Revenue p = price charged for each unit sold C < R Business is at a profit R < C Business is at a loss C = R No profit or loss - Break-even point 1. C = 10x + 600 R = 30x a) What is the break-even point? 10x + 600 = 30x 600 = 20x x = 30 b) Graph C and R and label the break-even point and indicate where a profit and a loss results. [Image of a graph with C = 10x + 600 and R = 30x] R = 30(30) = 900 (30, 900) ∈ cost + rev (0, 600) ∈ cost (0, 0) ∈ revenue 2. C = 20x + 50 R = 30x a) What is the break-even point? 20x + 50 = 30x 50 = 10x x = 5 b) Graph C and R and label the break-even point and indicate where a profit and a loss results. [Image of a graph with C = 20x + 50 and R = 30x] R = 3(50) = 150 (500, 150) Break-even (0, 50) ∈ cost (0, 0) ∈ revenue

Application in Busines and Economics

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