We have two functions:
- The cost function C(x) that can be described as the fixed cost ($30,000) plus the variable cost (the unit variable cost per unit times the units, 5x)
[tex]C(x)=30000+5x[/tex]
- The revenue function R(x) which is the price times the number of units.
[tex]R(x)=10x[/tex]
We have to find x for which cost and revenue are the same.
This can be expressed mathematically as C(x) = R(x).
We then can solve it as:
[tex]\begin{gathered} C(x)=R(x) \\ 30000+5x=10x \\ 30000=10x-5x \\ 30000=5x \\ x=\frac{30000}{5} \\ x=6000 \end{gathered}[/tex]
This means that the company has to sell x = 6000 chocolate bars to break even (costs = revenue).
Answer: 6000 chocolate bars.