Solve the problem.
-Regrind, Inc. regrinds used typewriter platens. The variable cost per platen is $1.50. The total cost to regrind 90 platens is $400. Find the linear cost function to regrind platens. If reground platens sell for $8.00 each, how
Many must be reground and sold to break even?
A) C(x) = 1.50x + 400; 62 platens
B) C(x) = 1.50x + 265; 28 platens
C) C(x) = 1.50x + 400; 43 platens
D) C(x) = 1.50x + 265; 41 platens

Question

Quizplus · Accepted Answer

The total cost to regrind 90 platens is $400, which includes both variable and fixed costs. The variable cost is $1.50 per platen, so for 90 platens, the variable cost is 90 * $1.50 = $135. Subtracting this from the total cost, $400 - $135 = $265, gives us the fixed cost. Therefore, the cost function is C(x) = 1.50x + 265. To break even, revenue (R) must equal cost (C), so at $8.00 per platen, 8x = 1.50x + 265. Solving for x gives x = 265 / (8 - 1.5) = 41 platens.

Solve the Problem. -Regrind, Inc. Regrinds Used Typewriter Platens. the Variable Cost Per