Jason started a company that makes and sells banjos. He spent $15,000 to start the company and spends $50 to make each banjo. The company sells each banjo for $150. The graph of the system of linear equations representing Jason’s company’s costs and revenue for making and selling x banjos is shown below.
How many banjos will his company need to sell for costs and revenue to be equal?
Each banjo sold contributes $100 toward profit. Then $15000/$100 = 150 banjos need to be sold to cover the $15,000 in start-up costs. A properly extended graph shows this.
