Solve the problem.
-Regrind, Inc. regrinds used typewriter platens. The variable cost per platen is $1.50. The total cost to regrind 70 platens is $400. Find the linear cost function to regrind platens. If reground platens sell for $8.40 each, how
Many must be reground and sold to break even?
A) C(x) = 1.50x + 295; 30 platens
B) C(x) = 1.50x + 400; 41 platens
C) C(x) = 1.50x + 295; 43 platens
D) C(x) = 1.50x + 400; 58 platens

Question

Quizplus · Accepted Answer

The total cost for 70 platens is $400, which includes both variable and fixed costs. The variable cost is $1.50 per platen, so for 70 platens, the variable cost is 70 * $1.50 = $105. Subtracting this from the total cost gives the fixed cost: $400 - $105 = $295. Thus, the cost function is C(x) = 1.50x + 295. To break even, revenue must equal cost. The revenue per platen is $8.40. Setting the revenue equal to the cost gives $8.40x = 1.50x + 295. Solving for x gives the number of platens needed to break even, which is 43.

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