Ponderosa Development Corporation (PDC)

• Question:

What is the breakeven point for monthly sales of the houses?

• Answer:

r(x) = c(x) or 115,000x = 105,000x + 40,000

Solving, x = 4.

• Question:

What is the monthly profit if 12 houses per month are built and sold?

• Answer:

p(12) = 10,000(12) - 40,000 = $80,000 monthly profit

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