The owner of a live music venue is considering changing his entrance fee. He can model the projected profits based on price increases using this equation, where n is the number of $2 price increases. P(n) = -10n^2 + 50n + 7,500 For which number of $2 price increases will he break even?

Respuesta :

The break-even point is the point at which  there is no loss or gain in business. For n = 2 , $2 price increases will be break even.

Break-even point is the point at which total revenue equals total costs . At this point there is no profit or loss.

Projected profit model is,

                  [tex]P(n) = -10n^2 + 50n + 7,500[/tex]

where n is the number of $2 price increases

Since at break even, there is no profit

So, equate P(n) = 0

[tex]0= -10n^2 + 50n + 7,500\\\\n^2 - 5n - 7,50=0\\\\n^{2} -30n+25n-750=0\\\\(n-30)(n+25)=0\\\\n=-25,n=30[/tex]

Since, n is the number of $2 price increases . So it can not be negative

Therefore,  n = 30

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