Given:
The cost of a energy drink is $1.20.
The manufacturing fixed cost is $8000.
The selling cost of a drink is $2 for each.
Explanation:
The cost function includes energy drink cost and fixed cost. So cost function for x energy drink is,
[tex]C(x)=1.20x+8000[/tex]The revenue function for the x energy drinks is,
[tex]R(x)=2.0x[/tex]For break-even point the cost function and revenue functions are equal. So,
[tex]1.20x+8000=2.0x[/tex]Simplify the equation to obtain the value of x.
[tex]\begin{gathered} 1.20x+8000=2.0x \\ 2.0x-1.20x=8000 \\ x=\frac{8000}{0.8} \\ =10000 \end{gathered}[/tex]So number of energy drinks need to sell for break even is 10000.
