Question

help?

Answer 1

@mathmale

Answer 2

Peter, have you seen this type of problem before? it's an application of algebra to business. Have you worked with the following before? Costs, Profit, Revenue, Break Even

Answer 3

no not really

Answer 4

suppose you own and operate Lohrbach Mfg. Co. and make fancy widgets. Suppose you sell these widgets on the open market and take in R dollars for x sales. Suppose that it cost you C dollars total to produce these widgets for sale.

Answer 5

Use common sense to answer the following:
(1) what would your situation be if R=C?
(2) if R<C?
(3) if R>C?

Answer 6

i would be making no money for 1

Answer 7

Right. That situation is called "Break Even". No income, no loss. Revenue=Production and overhead costs.
What about 2 and 3?

Answer 8

2 ill be making money and 3 ill be losing

Answer 9

so you already know enough about business to answer these questions correctly.

Answer 10

Now please take a piece of paper and graph the function R(x)= 2x and the function C(x)=1 + 1x on the same set of coordinate axes.

Answer 11

they intersect (1,2)

Answer 12

Look at that point, (1,2). Can you think of an appropriate name for it?

Answer 13

…..revenue ?

Answer 14

the line through the origin with a positive slope is your Revenue "curve".
the line through (0,1) with a positive slope is your Costs "curve."
Note how R=C at (1,2). Try again. What's the name of this point? Hint: you've already used the appropriate words a few minutes back.

Answer 15

break even

Answer 16

Perfect. That's your break even point.
this is the essence of your math homework problem.
I'm going to look at that problem now and ask you a few more qeustions.

Answer 17

ok

Answer 18

Peter, I gave you R(x)=2x and C(x)=x+1. Right? And you've found that these two lines intersect at break-even point (1,2), correct?

Answer 19

yes

Answer 20

Would you mind graphing, on the same set of coordinate axes as before, a new cost function C(x) = 2x + 1? Cross out the old C(x)=x+1. What do you see now?
Look at both R and C.

Answer 21

they intersect at 1,1

Answer 22

0,1***

Answer 23

R(x)=2x
C(x)=2x + 1
intersect?

Answer 24

that is, do they intersect?

Answer 25

no they don't

Answer 26

Right. Now please go back and re-read the problem that we're trying to solve.
How much would you be able to write at this point to answer the questions posed there (not my questions)?

Answer 27

I assume you know that BRB means "be right back." BRB.

Answer 28

the break even point would be where the two lines intersect, and if they don't intersect, they will be making no revenue

Answer 29

Your first statement is perfect.
One of the goals here is to identify the conditions under which you may break even. the C and R graphs will be parallel if they have the same slope, so break even is just not possible. if the slopes are =.
suppose that the R graph is parallel to the C graph, but always above it. How would you describe this situation from a business perspective?

Answer 30

i would be losing money ?

Answer 31

If R is greater than C, you're taking in more than you're paying out, and therefore, you're .... what?

Answer 32

making revenue

Answer 33

Otherwise known as profit!

Now suppose the C curve is always higher up than but parallel to the R curve. You would be ... ?

Answer 34

losing money,

Answer 35

:(

Answer 36

So, that's basically what you need to answer the homework question.
Are you comfortable with this?
Need further discussion?

Answer 37

I realize all too well that this has taken a long time, but then we did need to start from scratch discussing the concepts of break even, revenue, costs and break-even point. To some extent I would speed up my presentation if you were to ask me to do so, but then less info would be covered. Remember, you do have a choice here.

Answer 38

yes i haven't learned any of this yet, so it was worth it. thanks again!

Answer 39

I'm so glad you 're apparently satisfied.

If you like, type up an answer to the HW question and mail it to me; I'd then give you feedback. Or, you could simply move on to some other question.

Answer 40

can i just do it on here ?

Answer 41

Prefer a new post, really.

Answer 42

no i meant the answer to this question

Answer 43

Oh, of course. Sorry I misunderstood.

Answer 44

if the two lines intersect, the company will be breaking even at that point. if the cost curve is parallel to the expense curve, but always above it, the company will be making steady profit. if the cost curve is parallel to the expense curve, but the expense curve is always higher than the cost curve, the company will be losing money

Answer 45

sounds good. Note, however, that the homework problem asks you to identify the conditions under which the cost and revenue curves intersect and those under which they do not intersect.
You might therefore add: "If the cost and revenue functions are both linear and have the same slope, but different y-intercepts, their graphs will never intersect." On the other hand (conversely), if both are linear but have different slopes, they may intersect. We are interested ONLY in intersections in the first quadrant."

Answer 46

so that should be it instead of what i wrote ?

Answer 47

We're making x widgets at Lohrbach Mfg. Co., and common sense dictates that x is zero or greater. I haven't yet learned of a company that makes a negative # of widgets.

I'd suggest you keep what I've written, or a shorter version of it, and write your additions below it. C<R and R<C are special cases when the 2 lines ahve the same slope, right? And your part describes that perfectly.

Answer 48

:D

Answer 49

So. Satisfied?

Answer 50

yep! i only have 3 more :D

Answer 51

Great working with you. Hope you're feeling better (which is not to underestimate your disappointment).
Go ahead and post the hardest of those 3 as a new OpenStudy problem.