Question

a camera manufacturer spends $2250 each day for overhead expenses plus $6 per camera. the cameras sell for each $16. how many cameras must the company sell in one day to equal its daily costs? if the company can increase production by 50 cameras per day what would their daily profit be

Answer 1

Recognize the concept posed in the first question? It's "break even." Finding the break even point involves finding the number of cameras sold such that the revenue gained equals the expenses (no profit results).
Could you write the revenue function?
the total cost function?

Answer 2

I don't even get what its asking

Answer 3

sorry slow learner

Answer 4

I encourage you to look up "break even" and/or "break even point" in your textbook, as that's what this question is all about.

First this problem discusses costs: the fixed cost of $2250 per day, and the variable cost which is based on $6 per camera manufactured, times the number of cameras manufactured.. That COST formula comes out to $2250 + ($6/day) * x.

Next, the problem mentions that each camera sells for $16. This is the "unit price." Multiplying the unit price by the number sold produces the REVENUE function: ($16/day) * x.

Equate COST to REVENUE. Simplify the resulting equation as much as possible and then solve it for the value of x. That's your "break even quantity."

Answer 5

oh I get it now thanks I just didn't get if the $6 per camera or day

Answer 6

so the company must sell 141 cameras to equal its daily cost ;340

Answer 7

is this right

Answer 8

Angela:
Mind typing out what you obtained for the REVENUE function? for the COST function?
Something's not quite right here.

Setting up the COST function is a bit more challenging than is setting up the REVENUE function.

The cost function is 2250 + 6x (which is the sum of the fixed and variable costs).

Equate that to the revenue function.

Solve the resulting equation for x, the break even quantity.