7 line tshirt company manufactures t-shirts and sells them online.The company has a model where the cost C, in dollars to make x t-shorts is given by the equation C=40/30x + 20 and the revenu R, in dollars , made by selling x t-shirts is given by R=15x. The break even point is where revenue equations intersect.


How many t shirts must the company sell to break even?

Respuesta :

Answer:

The company must sell at least 2 shirts to break even.

Step-by-step explanation:

Cost:

The cost is given by the following equation:

[tex]C = \frac{40}{30x+20} + 20 = \frac{4x}{3} + 20[/tex]

Revenue:

The revenue is given by the following equation:

[tex]R = 15x[/tex]

How many t shirts must the company sell to break even?

Breakeven point is when the revenue is the same as the costs. So

[tex]\frac{4x}{3} + 20 = 15x[/tex]

[tex]15x - \frac{4x}{3} = 20[/tex]

[tex]\frac{45x}{3} - \frac{4x}{3} = 20[/tex]

Multiplying everything by 3

[tex]45x - 4x = 60[/tex]

[tex]41x = 60[/tex]

[tex]x = \frac{60}{41} = 1,...[/tex]

Since you cant make a decimal value of shirts

The company must sell at least 2 shirts to break even.

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The company must sell about 2 shirts to break even

Given the cost C, in dollars to make x t-shorts by the equation C = 40/30x + 20 and the revenue R, in dollars, made by selling x t-shirts is given by R=15x

Since the breakeven occurs at the point where the cost is equal to the revenue, hence;

  • 40/30x+20 = 15x

Simplify and calculate the value of x;

  • 4/3 x+20 = 15x

Subtract 15x from both sides

4x/3 - 15x = -20

(4x-45x)/3 = -20

-42x = -60

x = 60/42

x = 1.43

Hence the company must sell about 2 shirts to break even

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