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1.2 Question 2
1.2 Question 2
b) What profit (or loss) results from the sale of 500 copies of
The Collegiate Investigator?
Solution: Plug 500 into the profit function, which gives
𝑃(500) = 0.10(500) − 70 = −20, so selling 500 copies results
in a loss of $20.
c) How many copies should be sold in order to break even?
To find the break-even point, set the profit function equal to 0
and solve for 𝑥. This gives 0.10𝑥 − 70 = 0, so 0.10𝑥 = 70 and
𝑥 = 700. Thus, they must sell 700 copies to break even.