A greeting card company can sell cards for $2.75 each. The company’s total cost consists of a fixed overhead of $12,000 plus variable costs of 35 cents per card.

a. Express the company’s total revenue, total cost, and total profit in terms of x, the number of cards sold.

b. How many cards must the company sell to break even?

c. What will be the company’s profit or loss if it sells 5,000 cards?

d. How many cards must be sold for the company to make a profit of $9,000?

e. On the same set of axes, graph the company’s total revenue and total cost functions. What is the significance of the point where the cost function crosses the y axis?