Question

3. A cellular company’s revenue and cost functions for selling mobile phones can be
modeled by the linear equations R = 50n and C = 10n + 300, where R represents the
revenue in dollars, C represents the cost, and n represents the number of phones sold.
How many phones will have to be sold so that the revenue is the same as the cost (this
is called the break-even point)?

Answers

  1. The number of phones that will have to be sold so that the revenue is the same as the cost is 7.5

    How many phones will have to be sold so that the revenue is the same as the cost?

    The functions are given as:
    C = 10n + 300
    R = 50n
    At the break-even point, we have
    C = R
    This implies that
    50n = 10n + 300
    Evaluate the like terms
    40n = 300
    Divide by 40
    n = 7.5
    Hence, the number of phones that will have to be sold so that the revenue is the same as the cost is 7.5
    Read more about break even points at
    #SPJ1

    Reply

Leave a Comment