Systems of Linear Equations Business Model
You are the manager of a small company producing interlocking paving pieces, called pavers, which are used for walkways and driveways. You sell the pavers in bundles that cost $200 each.Write an equation for the revenue in dollars, R(x), from the sale of x bundles of pavers. The total cost in dollars, C(x), of producing x bundles of pavers is modeled by the equation C(x) = 160x + 1000. The rate of change of the cost function is 160 dollars per bundle.The y-intercept of the cost function is 1000 dollars.The rate of change indicates that each bundle costs $ 160 to manufacture.The y-intercept indicates that the fixed manufacturing cost is $ 1000. Explain the meaning of the break-even point.Then calculate the break-even point of your company using the cost and revenue functions. The break-even point of the company occurs at 25 bundles.At this point, both the cost and revenue are $ 5000. For what values of x will your revenue exceed your cost? x < 25 bundles x = 25 bundles x > 25 bundles x = 5000 bundles