Question

even point.57. A fast-food restaurant has a cost of production C(x)=11x+120 and a revenue function R(x)=5x. When does the company start to turn a profit?

Answer 1

Answer:

The company will start to turn profit after 20 units

Explanation:

Data provided in the question:

C(x) = 11x + 120

R(x) = 5x

Now,

The company start to turn a profit when it will reach the break even point

At break even point

Total profit = 0

i.e

R(x) - C(x) = 0

or

5x - 11x + 120 = 0

or

- 6x = -120

or

x = 20 units

Hence,

The company will start to turn profit after 20 units