Engineering Board Exam Reviewer · Break-Even Analysis · hard
The selling price of a product falls with volume as p=200-0.01x pesos, and the total cost is TC=50,000+150x. Find the larger break-even quantity.
- 1,382 units
- 2,500 units
- 5,000 units
- 3,618 units
Answer
D. 3,618 units
Solution
Revenue =(200-0.01x)x. Set it equal to cost: 200x-0.01x2=50,000+150x 0.01x2-50x+50,000=0 x2-5,000x+5,000,000=0. x= 5,000 5,0002-4(5,000,000)2= 5,000 2,2362. The larger root is x 3,618 units (the smaller is 1,382).
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