The blue star publishing company produces daily "Star news". It costs $1200 per day to operate regar

Discussion in 'Calculator Requests' started by math_celebrity, Mar 15, 2017.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    The blue star publishing company produces daily "Star news". It costs $1200 per day to operate regardless of whether any newspaper are published. It costs 0.20 to publish each newspaper. Each daily newspaper has $850 worth of advertising and each newspaper is sold for $.30. Find the number of newspaper required to be sold each day for the Blue Star company to 'break even'. I.e all costs are covered.

    Build our cost function where n is the number of newspapers sold:
    C(n) = 1200+ 0.2n

    Now build the revenue function:
    R(n) = 850 + 0.3n

    Break even is where cost and revenue are equal, so set C(n) = R(n)
    1200+ 0.2n = 850 + 0.3n

    Using our equation solver, we get:
    n = 3,500

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