Please describe how to solve.
Problem: Break Evan analysis
The Aloha Christmas tree company buys fresh christmas trees from the Northwest United States at the start of the Christmas season for $25 a piece and sells them in Honolulu for $65 a piece. He rents three refrigerated containers from Matson Navigation Company to transport the trees from Seatle to Honolulu for $1000 a container
TC = 3000 + 25Q Brk. Even: solve for Q where TR = TC
TR = 65Q $5000 Profit Solve for Q: TR - TC = 5000
Required to do:
Problem 1. Write the total revenue and total cost function and find the number of Christmas trees
Problem 2. From the above, find the number of trees that must be sold to achieve break even in the operation.
Problem 3. If the proprietor wants to achieve a profit of $5000, how many trees must he sell.
| Y |
TR |
TC |
Profit |
| 0 |
0 |
3000 |
-3000 |
| 10 |
650 |
3250 |
-2600 |
| 20 |
1300 |
3500 |
-2200 |
| 30 |
1950 |
3750 |
-1800 |
| 40 |
2600 |
4000 |
-1400 |
| 50 |
3250 |
4250 |
-1000 |
| 60 |
3900 |
4500 |
-600 |
| 70 |
4550 |
4750 |
-200 |
| 75 |
4875 |
4875 |
0 |
| 80 |
5200 |
5000 |
200 |
| 90 |
5850 |
5250 |
600 |
| 100 |
6500 |
5500 |
1000 |
| 110 |
7150 |
5750 |
1400 |
| 120 |
7800 |
6000 |
1800 |
| 130 |
8450 |
6250 |
2200 |
| 140 |
9100 |
6500 |
2600 |
| 150 |
9750 |
6750 |
3000 |
| 160 |
10400 |
7000 |
3400 |
| 170 |
11050 |
7250 |
3800 |
| 180 |
11700 |
7500 |
4200 |
| 190 |
12350 |
7750 |
4600 |
| 200 |
13000 |
8000 |
5000 |