ⓐ The manufacturer has $7,000 of fixed costs no matter how many weight training benches it produces. In addition to the fixed costs, the manufacturer also spends $105 to produce each bench. Suppose x benches are sold.
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| Write the general Cost function formula. |
C(x)=(cost per unit)⋅x+fixed costs |
| Substitute in the cost values. |
C(x)=105x+7000 |
ⓑ The manufacturer sells each weight training bench for $245. We get the total revenue by multiplying the revenue per unit times the number of units sold.
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| Write the general Revenue function. |
R(x)=(sellingpriceperunit)⋅x |
| Substitute in the revenue per unit. |
R(x)=245x |
ⓒ Essentially we have a system of linear equations. We will show the graph of the system as this helps make the idea of a break-even point more visual.
{C(x)=105x+7000R(x)=245xor{y=105x+7000y=245x

ⓓ To find the actual value, we remember the break-even point occurs when costs equal revenue.
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| Write the break-even formula. |
C(x)105x+7000==R(x)245x |
| Solve. |
700050==140xx |
When 50 benches are sold, the costs equal the revenue.

When 50 benches are sold, the revenue and costs are both $12,250. Notice this corresponds to the ordered pair (50,12,250).