## sasogeek 3 years ago 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?

1. 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?

2. 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.

3. sasogeek

@hartnn

4. 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?

5. 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 ??

6. hartnn

oh, this is economics...

7. sasogeek

not calculus, but it was an assignment by our computational math lecturer... :/

8. sasogeek

linear programming i suppose...

9. 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

10. hartnn

so can u find profit and loss ? then equate them, maybe u get an equation in X which you can solve

11. 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

12. hartnn

1000+x-20= revenue = 50 = selling price so maybe u can find x from here, but i am not sure

13. hartnn

2nd opinion needed

14. sasogeek

hmmm, well finding x means x will now seize to be a variable...

15. hartnn

maybe for 1 break even point, there is one X, which we can find from the equation i wrote....

16. 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 :/

17. hartnn

yeah, that was my first call, leave answer in X only....

18. sasogeek

ok thanks hartnn :) <3

19. hartnn

welcome ^_^

20. hartnn

though i didn't help much....

21. sasogeek

well you confirmed my work.. that's a lot xx