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 Dans 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.