Question

The selling price of a commodity is fixed at ₹ 60 and its cost function is C(x) = 35x + 250

1. Determine the profit function.
2. Find the break even points.

Answer 1

Given: C(x) = 35x + 250

And S(x) = 60x

i. P(x) = S(x) – C(x)

= 60x – 35x – 250

= 25x – 250

ii. For break even points,

P(x) = 0

⇒ 25x – 250 = 0   ...[Putting P(x) from (i)]

⇒ `x = 250/25`

⇒ x = 10

∴ x = 10