sasogeek
  • sasogeek
11. Airborn travel and tours arrange trips and have a fixed cost of $1,000 per week. Their variable cost per trip can be represented by the function VC = X – 20 where X is the number of trips arranged. The price of a trip is $50. What is the break-even number of trips per week for this company?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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katieb
  • katieb
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sasogeek
  • sasogeek
the variable cost turns out to be a function of number of trips which varies per week, obviously... how do i determine the value of X and hence, solve the problem?
sasogeek
  • sasogeek
break even = fixed cost / (selling price - variable cost) break even = 1000 / (50-x+20) break even = 1000/70-x hence depending on the number of trips they have, they're break even point will either increase or decrease.
sasogeek
  • sasogeek
@hartnn

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sasogeek
  • sasogeek
what do you think? can i leave my answer in terms of x or there's a value for x i'm not seeing? OR i could assume a value for x?
hartnn
  • hartnn
i have not seen such question before, you have used all the given information , so i think the answer will be in terms of X, is this calculus, in any way ??
hartnn
  • hartnn
oh, this is economics...
sasogeek
  • sasogeek
not calculus, but it was an assignment by our computational math lecturer... :/
sasogeek
  • sasogeek
linear programming i suppose...
hartnn
  • hartnn
found this in wiki, 'he break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even.' donno whether it helps
hartnn
  • hartnn
so can u find profit and loss ? then equate them, maybe u get an equation in X which you can solve
sasogeek
  • sasogeek
yeah i know what the break even point is, i just dunno about this question cos it says x is the number of trips a week but there's no clues as to how to determine x... unless maybe i work at that company lol :P
hartnn
  • hartnn
1000+x-20= revenue = 50 = selling price so maybe u can find x from here, but i am not sure
hartnn
  • hartnn
2nd opinion needed
sasogeek
  • sasogeek
hmmm, well finding x means x will now seize to be a variable...
hartnn
  • hartnn
maybe for 1 break even point, there is one X, which we can find from the equation i wrote....
sasogeek
  • sasogeek
hmm, well that makes sense, so then the break even point is dependent on X... I guess I'll leave the answer in terms of X :/
hartnn
  • hartnn
yeah, that was my first call, leave answer in X only....
sasogeek
  • sasogeek
ok thanks hartnn :) <3
hartnn
  • hartnn
welcome ^_^
hartnn
  • hartnn
though i didn't help much....
sasogeek
  • sasogeek
well you confirmed my work.. that's a lot xx

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