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Break-Even Point Worksheet



  1. Technology is now promising to bring light, fast, and beautiful wheelchairs to millions of disabled people. A company is planning to manufacture these radically different wheelchairs. Fixed cost will be $500,000 and it will cost $400 to produce each wheelchair. Each wheelchair will be sold for $600.

    1. Write the cost function, C, of producing x wheelchairs.

    2. Write the revenue function, R, from the sale of x wheelchairs.

    3. Determine the break-even point. Describe what this means.



  1. A company that manufactures running shoes has a fixed cost of $300,000. Additionally, it costs $30 to produce each pair of shoes. They are sold at $80 per pair.

    1. Write the cost function, C, of producing x pairs of running shoes.

    2. Write the revenue function, R, from the sale of x pairs of running shoes.

    3. Determine the break-even point. Describe what this means.



  1. Bob has a lawn mowing business and invests $300 in a new lawn mower for his business. He uses 1 tank of gas, costing $10, on each yard he mows. Bob charges his customers $35 to mow their yards. How many yards must Bob mow in order to break even?

    1. Write the cost function, C, of mowing x number of yards.

    2. Write the revenue function, R, from mowing x number of yards.

    3. Determine the break-even point. Describe what this means.



  1. Karen makes custom jewelry. In order to sell her jewelry, Karen rents a small kiosk at the local mall for $50 per month. She must buy blank medallions, stones, and chains to make her custom necklaces. These supplies cost approximately $30. Karen sells her necklaces for $55 each. How many necklaces must she sell to cover her costs (or break even)?

    1. Write the cost function, C, of making x number of necklaces.

    2. Write the revenue function, R, from making x number of necklaces.

    3. Determine the break-even point. Describe what this means.

    4. How many necklaces does Karen need to sell to make a profit of $100?



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