Working with Rational Expressions
Management at H Industries needs to know how many units its new Micro Storage
Device Division needs to produce in order to make a profit. Analysts have determined
the following relationships:
The cost, in dollars, of manufacturing x hundred units can be approximated using:
C  x 
100, 000
x
The revenue, in dollars, from selling x hundred units can be approximated using:
R  x 
250, 000
20  x
A graph of each function is provided below.
Exercises:
i.
The new division will break even when revenues and costs are equal. Use the graph to estimate
the point at which this will occur.
ii.
How is profit related to revenue and cost? Write a function that models the profit from selling x
hundred units.
iii.
How many units must be manufactured and sold in order for the new division to be profitable?