Learn Before
Example

Solving a High-Cost Weight Training Bench Cost and Revenue Application Using a System of Equations

We can model manufacturing scenarios with cost and revenue functions to determine the break-even point using a system of equations. For example, if a manufacturer of a weight training bench spends $120\$120 to build each bench, sells them for $170\$170, and has fixed monthly costs of $150,000\$150{,}000, the cost function is C(x)=120x+150,000C(x) = 120x + 150{,}000. The revenue function is R(x)=170xR(x) = 170x. To find the break-even point where costs equal revenue, we solve the equation 120x+150,000=170x120x + 150{,}000 = 170x. Subtracting 120x120x gives 150,000=50x150{,}000 = 50x, which simplifies to x=3,000x = 3{,}000. Selling 3,0003{,}000 benches yields revenue and costs of $510,000\$510{,}000, making the break-even point the ordered pair (3,000,510,000)\left(3{,}000, 510{,}000\right).

0

1

Updated 2026-04-25

Contributors are:

Who are from:

Tags

OpenStax

Intermediate Algebra @ OpenStax

Ch.4 Systems of Linear Equations - Intermediate Algebra @ OpenStax

Algebra