Systems of Linear Equations Business Model

Worksheet by Angelica Rohring
Systems of Linear Equations Business Model worksheet preview
Language
ENG
Assignments
12 classrooms used this worksheet

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

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