Suppose that a company has fixed costs of 400 dollars and


Suppose that a company has fixed costs of 400 dollars and variable costs of 0.75x+1410 dollars per unit, where x is the number of units produced. Suppose further that the selling price of its product is 1500−0.3x dollars per unit. In each part, assume that the number of units produced/sold must be a whole number and round to the nearest one.

Find the break-even points.

The larger number of units at which break-even occurs is ______ , with corresponding revenue _____ dollars and The smaller number of units at which break-even occurs is _____ , with corresponding revenue _____ dollars. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost)

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Financial Management: Suppose that a company has fixed costs of 400 dollars and
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