Question
A company markets exercise DVDs that sell for $ 19.95 , including shipping and handling. The monthly fixed costs(advertising, rent,etc.) are $ 22,080 and the
A company markets exercise DVDs that sell for $19.95, including shipping and handling. The monthly fixed costs(advertising, rent,etc.) are $22,080 and the variable costs(materials, shipping,etc.) are $8.45 per DVD.
(A) Find the cost equation and the revenue equation.
(B) How many DVDs must be sold each month for the company to breakeven?
(C) Graph the cost and revenue equations in the same coordinate system and show thebreak-even point. Interpret the regions between the lines to the left and to the right of thebreak-even point.
(A) What is the costequation?
(expression using x as the variable. Do not include the$ symbol in youranswer.)
What is the revenueequation?
( expression using x as the variable. Do not include the$ symbol in youranswer.)
(B) How many DVDs must be sold each month for the company to breakeven?
What does the region between the lines to the left of thebreak-even pointrepresent?
A.
The loss when x DVDs are manufactured.
B.
The profit when x DVDs are manufactured.
C.
The number of DVDs that must be manufactured to break even.
D.
The number of DVDs manufactured.
What does the region between the lines to the right of thebreak-even pointrepresent?
A.
The number of DVDs manufactured.
B.
The profit when x DVDs are manufactured.
C.
The loss when x DVDs are manufactured.
D.
The number of DVDs that must be manufactured to break even.
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