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Question
modeling a companys revenue and cost
how many units must the company sell to break even?
a company’s revenue, ( r(x) ), in thousands of dollars, from selling ( x ) thousand units is modeled by ( r(x) = -2x^2 + 12x ), and its cost, ( c(x) ), in thousands of dollars, is modeled by ( c(x) = 4x ).
2,000 or 4,000 units
0 or 4,000 units
0 or 16,000 units
2,000 or 3,000 units
Step1: Set Revenue = Cost
To break even, \( R(x) = C(x) \). Substitute \( R(x) = -2x^2 + 12x \) and \( C(x) = 4x \):
\( -2x^2 + 12x = 4x \)
Step2: Solve the Equation
Subtract \( 4x \) from both sides:
\( -2x^2 + 8x = 0 \)
Factor out \( -2x \):
\( -2x(x - 4) = 0 \)
Set each factor to zero:
- \( -2x = 0 \Rightarrow x = 0 \)
- \( x - 4 = 0 \Rightarrow x = 4 \)
Since \( x \) is in thousands of units, \( x = 0 \) means 0 units, and \( x = 4 \) means \( 4 \times 1000 = 4000 \) units.
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0 or 4,000 units