1. At Edsel Automotive, the management team is planning to expand one of its plants by adding a new assembly line for sport utility vehicles (SUVs). The cost of setting up the new SUV assembly line is estimated at $7 million. The cost of manufacturing (raw materials, labor, etc.) an SUV is $36,000 and the company is planning to sell each SUV for $38,500.

Industrial engineers at Edsel say that the new assembly line will roll off nine SUVs per day. How many days will it take for the company to be at the break-even point?

First solve this problem algebraically, and then make a graph of cost vs. quantity and revenue vs. quantity (on the same graph). Revenue is generated from the sales of the SUV's. Verify the algebraic answer using the graph.