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?
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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?
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.
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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?
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 ??
oh, this is economics...
not calculus, but it was an assignment by our computational math lecturer... :/
linear programming i suppose...
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
so can u find profit and loss ?
then equate them, maybe u get an equation in X which you can solve
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
1000+x-20= revenue = 50 = selling price
so maybe u can find x from here, but i am not sure
2nd opinion needed
hmmm, well finding x means x will now seize to be a variable...
maybe for 1 break even point, there is one X, which we can find from the equation i wrote....
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 :/
yeah, that was my first call, leave answer in X only....