In business, we use the equation
where is the profit you make from selling tons of some product, after you pay expenses. The function represents the revenue from selling the product, and represents the cost you must pay to manufacture the product.
The graph below shows the cost and revenue functions, where the input, is the number of tons of the product sold.
The vertical intercept of the Cost function is at Click and drag this point along the Cost curve
This will move points on the graphs of the Revenue and Profit functions.
Notice that the height of the point is equal to the difference in the heights of points on the and graphs.
  1. Move the point along the graph of until the profit is zero. At approximately how many tons will the profit be zero (give your answer to the nearest whole number)? Note: This value is called the break even point, after which the business begins to make actual profit.
    tons
  2. Now click the box to show the graph of Notice that it begins with negative outputs, increasing to the break even point, and becoming positive thereafter.
    • If 6221.2 and 6240, then what is 6
      Answer:
    • If it costs 124.2 thousand dollars to produce 1 tons, and the revenue is 40 thousand dollars, then what is 1
      Answer: