C(x)=3x+25,000; R(x)=8x; What should be the level of sales in order for the division to realize a 15% profit over the cost of making the product?
2007-02-07 19:44:18 · 2 answers · asked by tadkc 1 in Science & Mathematics ➔ Mathematics
Im only guessing here as I think you've just copied and paste the question into here without explaing what C(x) is or R(x) is.
I'm guessing C = cost and R = revenue and X is the amount of product.
therefore you need a 15% profit
Revenue = 15%Cost + Cost
8x = (3x+25000)*15% + 3x +25000
8x = 0.45x + 3750 + 3x + 25000
8x - 0.45x - 3x = 28750
4.55x = 28750
x = 6318.68 units
This can also be worked out using the Break Even Point formula in Economics/Accounting
2007-02-07 20:05:02 · answer #1 · answered by Renesis 2 · 1⤊ 0⤋
(3x + 25,000)/8x = 0.85
3x + 25,000 = 6.8x
3.8x = 25,000
x = 6,579
2007-02-08 04:01:38 · answer #2 · answered by Helmut 7 · 0⤊ 0⤋