Question

A company sells horse shoes. The company's fixed and variable costs are modeled by the function C(x)=5.6x+1,200. Their revenue is modeled by the function R(x)=7.4x. If x represents the number of horse shoes, how many do they have to sell to break even? Round your answer up to the nearest whole number, and do not include units.

Answer 1

Answer:

667 horse shoes

Explanation:

Given that,

The company's fixed and variable costs are modeled by the function

Cost function: C(x) = 5.6x + 1,200

Revenue function: R(x) = 7.4x

x ⇒ represents the number of horse shoes

For break even,

Cost = Revenue

5.6x + 1,200 = 7.4x

7.4x - 5.6x = 1,200

1.8x = 1,200

x = 667

Therefore, they have to sell 667 horse shoes to break even.