The cost of producing x items per day is given by y = 12 +
3x + x^2.
Each item can be sold for $10. The income made
when x items are sold is 10*x and the cost of production is 12 + 3x +
x^2.
The revenue function is the amount that one gets by
selling the items. This is f(x) = 10x
The profit function
is the total revenue - total costs, given by P(x) = 10x - 12 - 3x -
x^2
At break-even point P(x) =
0
=> 10x - 12 - 3x - x^2 =
0
=> x^2 - 7x + 12 =
0
=> x^2 - 4x - 3x + 12 =
0
=> x(x - 4) - 3(x - 4) =
0
=> (x - 3)(x - 4) =
0
x = 3 and x =
4
We find that if either 3 or 4 items are
manufactured the profit is zero. For all other values of x the profit is negative. There
is no profit made by producing and selling this item at the given terms (i.e. there is
no break-even point).
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