canoeshasafixedcostof20,000.itcost40toproduceeachcanoe.thesellingpriceis80percanoe

Our fixed cost is 20000.

Our variable cost is 40

The cost function is written as variable costs * number of units + fixed costs

C(x) = 40x + 20000.

The product sells for 80

Therefore, R(x) = 80x

Break-even is where C(x) = R(x)

40x + 20000. = 80x

40x + 20000. - 40x = 80x - 40x

40x = 20000.

40x | |

40 |

= |

20000. |

40 |

= |

20000. |

40 |

x =

R(500) = 80(500)

R(500) =