The chart below illustrates two linear functions; a cost function, and a revenue function. The x-axis represents units sold and the y-axis represents dollars. Notice that at times, the cost function (blue line) is above the revenue function (red line) and at times the revenue function is above the cost function. There is also a point where the two linear functions cross, also known as the break-even point. 600,000 C(x) = 250x + 213,000 500,000 Profit- 400,000 Loss (710, 390500) 300,000 200,000 R(x) = 550x 100,000 200 400 600 800 1000

Answer the questions below regarding the functions in the chart above. (One sentence is required for each question. There are 5 questions total.)

1. Why does the cost function C(x) begin on the y-axis at 213,000? What does this point represent?
2. At how many units does the company begin to make a profit?
3. What do the values in the point (710, 390,500), the break even point, represent? Why is it important for a business owner to know this point?

The chart below illustrates two linear functions; a cost function, and a revenue function. The x-axis represents units sold and the y-axis represents dollars. Notice that at times, the cost function (blue line) is above the revenue function (red line) and at times the revenue function is above the cost function. There is also a point where the two linear functions cross, also known as the break-even point. 600,000 500,000 C(x) = 250x + 213,000 Profit 400,000 Loss (710, 390500) 300,000 200.000 R(x) = 550x 100,000 X 200 400 600 800 1000