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A company makes pens. They sell each pen for $9.
Their revenue is represented by R = 9x.
The cost to make the pens is $3 each with a one time start up cost of $7000.
Their cost is represented by C = 3 x + 7000.
a) Find the profit, P, (P = R - C) when the company sells 1000 pens.
O 16000
O 9000
0-1000
0-4000
0-9000
b) Find the number of pens they need to sell to break even (when R = C).
O 1167
O 2334
O 1267
O 778

Respuesta :

(a) The profit when the company sold 1000 pens is -1000.

(b) The number of pens that are required to sell in the break-even is 1167.

(a)

The profit when the company sold 1000 pens is

P = R - C

= 9x - (3x + 7000)

= (9 × 1000) - (3 × 1000 + 7000)

= 9000 - (3000 + 7000)

= 9000 - 10000

= -1000

(b)

The number of pens that are required to sell in the break-even is

R = C

9x = 3x + 7000

9x - 3x = 7000

6x = 7000

x = 1167

Therefore we can conclude that:

(a) The profit when the company sold 1000 pens is -1000.

(b) The number of pens that are required to sell in the break-even is 1167.

Learn more: brainly.com/question/15036999

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