Linear Profit - Break Even

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Taught by TheMathDude
  • Currently 5.0/5 Stars.
9736 views | 1 rating
Meets NCTM Standards:
Features a TI Calculator
Lesson Summary:

This lesson covers the concept of the break-even point in a linear profit model, which includes linear revenue and cost. The instructor uses the example of making and selling chocolate bars to explain how to find the break-even point, where revenue equals cost and profit is zero. The lesson covers how to graph the linear equations and find the intersection point using the calculator's InterSec command. Additionally, the instructor demonstrates how to find the profit function and identify the equilibrium point where profit is zero. Overall, the lesson provides a clear and practical explanation of how to handle situations involving a linear profit model.

Lesson Description:

Handle situations involving a Linear Profit model (which includes Linear Revenue and Linear Cost). Handle means interpret the situation in order to solve for the input (quantity), output (profit), or any of the parameters (unit/marginal cost, unit/marginal price, fixed cost), whatever is missing.

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Additional Resources:
Questions answered by this video:
  • How do you find the break even point for a real-world relationship where revenue catches up with cost?
  • When does the revenue take over the cost of producing a product?
  • How can you find the break-even point for a situation using a TI graphing calculator?
  • How can you find the intersection of two lines using a TI graphing calculator?
  • How do you graph a profit function from the cost and revenue functions?
  • How do you find the zero of a function using a TI graphing calculator?
  • What is a break-even point?
  • How do you find the intersection of a cost equation C(u) = 0.55u + 10 and revenue equation R(u) = 0.95u and what does it tell you?
  • Staff Review

    • Currently 5.0/5 Stars.
    This lesson will show you how to find the break-even point in a real-world situation in which you are selling a product. A TI graphing calculator is used to graph the cost and revenue equations and find their intersection point, which is where you will break even. The many resources included really help drive home the concept of finding the break even point.