Preview

Pizza and Break-even Point

Satisfactory Essays
Open Document
Open Document
279 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pizza and Break-even Point
Complete both parts.
a) What are the three methods used for solving systems of equations? Which method do you prefer to use?
b) Break-Even Analysis – Systems of Equations Application Problem
Suppose a company produces and sells pizzas as its product. Its revenue is the money generates by selling x number of pizzas. Its cost is the cost of producing x number of pizzas.
Revenue Function: R(x) = selling price per pizza(x)
Cost Function: C(x) = fixed cost + cost per unit produced(x)
The point of intersection on a graph of each function is called the break-even point. We can also find the break-even point using the Substitution Method.
Suppose Dan’s Pizza Parlor has a fixed cost of $280 and it costs $4 to produce each pizza. Dan sells every pizza for $12.
The Revenue Function is: R(x) = 12x
The Cost Function is: C(x) = 280 + 4x
The break-even point occurs where the graphs of C and R intersect. Therefore, we can find this point by solving the system: y =12x y = 280 + 4x
How many pizzas does Dan have to produce to break-even? If he exceeds his break-even point, will he make a profit or have a loss?

A) What are the three methods used for solving systems of equations? Which method do you prefer to use? graphing, substitution, and elimination. I use all there but I think I use elimination more. B)

C(x) = 280 + 4x r(x)= 12x
12x= 280 + 4x
8x=280
x= 35 R(x) =12(35) =$420
So Dan has to produce 35 pizzas to produce his break-even point. He will have a$420 profit

You May Also Find These Documents Helpful

  • Good Essays

    Mat 540 Assign 3

    • 1377 Words
    • 6 Pages

    Julia can sell at least as many slices of pizza(X1) as hot dogs(x2) and barbecue sandwiches (X3) combined…

    • 1377 Words
    • 6 Pages
    Good Essays
  • Good Essays

    hsm 260 week 4 assign 2

    • 514 Words
    • 2 Pages

    45,000 meals – 43,992 meals = 1008 meals x $1.84 revenue per meal = $1,854.72 profit.…

    • 514 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Wk4fixedcosts

    • 123 Words
    • 1 Page

    The maximum number =650 breakeven point (BEP) =639 the surplus capacity=11 newsletter coordinator’s salary $6,000 per year, newsletter assistant’s salary $3,900 per year. Because the two employees do have the maximum capacity of 650 there is no slack capacity.…

    • 123 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Ms6000 Midterm

    • 909 Words
    • 4 Pages

    The break-even point is the volume that equates total revenue with total cost and profit is zero. Student Response True Score: 2/2 Value 100% Correct Answer True…

    • 909 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mgt 450 Study Guide

    • 463 Words
    • 2 Pages

    Donna can make a chair for about $100, she charges customers $150 to buy the chair, and customers perceive that the chair is worth $225. Donna's profit margin is…

    • 463 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Andre’s Hair Styling

    • 1082 Words
    • 5 Pages

    Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.…

    • 1082 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Bus 630 Week 1 Discussion

    • 1023 Words
    • 5 Pages

    5. Determine the necessary sales in unit and dollars to break-even or attain desired profit using the break-even formula.…

    • 1023 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Acct

    • 719 Words
    • 3 Pages

    8. What is the equation method for determining the break-even point? Explain how the results of this method differ from…

    • 719 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Built on the above LP model, Julia is estimated that she will earn a profit of $2,250.00. After paying for the rental lease, she has earned a net profit of $1,250.00. The model suggests that she rents the booth and sell only pizza and hotdog due to her spacing constraints. This is Julia best optimal results.…

    • 690 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The investigation of Peter Skrzynecki’s poetry has greatly enhanced and expanded my knowledge and understanding of the complexities of belonging.…

    • 761 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Inch and Lt

    • 1077 Words
    • 5 Pages

    5. Bob enters a pizza shop and notices there are three different sizes of pizzas available. Sizes are given as the diameter of the pizza in inches. The cost of a pizza is based on the size. Bob would like to know which size of pizza has the lowest cost per square inch.…

    • 1077 Words
    • 5 Pages
    Satisfactory Essays
  • Better Essays

    Forum 2 Linear Equations 2

    • 1133 Words
    • 4 Pages

    Pick one of the following problems. Show how you would solve it using a system…

    • 1133 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.…

    • 615 Words
    • 3 Pages
    Good Essays
  • Better Essays

    B2B Project

    • 1059 Words
    • 5 Pages

    1. A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in rupees per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. What is the level of production, price, and total profit per week?…

    • 1059 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Julias Food Booth

    • 409 Words
    • 2 Pages

    The objective here is to maximize the profit. Profit is calculated for each variable by subtracting cost from the selling price. The decision variables used are X1 for pizza slices, X2 for hotdog, and X3 for BBQ sandwich.…

    • 409 Words
    • 2 Pages
    Satisfactory Essays

Related Topics