Picture This charged $100 for video taping a wedding. For each wedding the variable cost is $25 and
the fixed cost is $750. State the cost,
revenue, and profit functions. Find the
number of weddings needed to break even?
**Please show your work!!**
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Revenue = $100
Variable cost = $25
Fixed cost = $750
Cost function is determined as under
c= 750+ 25x
where x is the number of units
R = 100x
Profit function = R-C
P = 100x - (750+25x)
P = 75x - 750
Contribution per unit sold = 100- 25 = 75
Break even point = Fixed cost/ Contribution per unit
= 750/ 75
= 10 units
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