2. Richmond Appliance repairs washing machines. The revenue that the company earns is given by the function R(h) = 20 + 45h dollars for every h hours spent repairing washing machines. The company’s overhead cost is given by the function C(h) = 5h2 – 30 dollars. For what number of hours does the company break even? Show your work

Respuesta :

Answer: 10 hours

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The break even point occurs when R(h) = C(h). In other words, when the revenue is the same as the cost.

R(h) = C(h)
20+45h = 5h^2-30
20+45h-20 = 5h^2-30-20
45h = 5h^2-50
45h-45h = 5h^2-50-45h
0 = 5h^2-45h-50
5h^2-45h-50 = 0
5(h^2-9h-10) = 0
5(h-10)(h+1) = 0
h-10=0 or h+1=0
h=10 or h=-1

Ignore the negative h value. Negative hours make no sense.

The only practical solution is h = 10

Therefore the break even point occurs when h = 10