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2-6 BREAKEVEN ANALYSIS

2-6 BREAKEVEN ANALYSIS. OBJECTIVES. Determine the breakeven prices and amounts using technology or algebra. Key Terms. zero net difference quadratic formula. Example 1.

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2-6 BREAKEVEN ANALYSIS

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  1. 2-6BREAKEVEN ANALYSIS OBJECTIVES Determinethe breakeven prices and amounts using technology or algebra.

  2. Key Terms • zero net difference • quadratic formula

  3. Example 1 Determine the prices at the breakeven points for the Picasso Paints product in Lesson 2-5. The expense function is E = –3,500p + 238,000, and the revenue function is R = –500p2 + 30,000p. Determine the prices at the breakeven points for this product both algebraically and graphically.

  4. Example 2 Determine the revenue and expense for the Picasso Paints product at the breakeven points found in Example 1.

  5. CHECK YOUR UNDERSTANDING How could you have improved on the error when calculating the expense and revenue values?

  6. CHECK YOUR UNDERSTANDING The expense function for a particular product is E = –2,000p + 125,000. The revenue function for that product is R = –600p2 + 18,000p. Determine the prices at the breakeven points for this product both algebraically and graphically.

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