BREAK$-$EVEN PRACTICE:

Toys $"$R$"$ Us reports fixed costs of $$4,500,000$ and variable costs of $$11\mathrm{.}50$ per unit. Revenue

is stated to be $$19\mathrm{.}75$ per unit. Use this information to find the following.

a$.$ Create a Revenue and Total cost function for Toys $"$R$"$ Us$.$ Use $"x"$ for units sold and

$R(x)$ and $C(x)$ for the revenue and cost functions.

b$.$ Find the Profit Function based on the Revenue and Cost functions.

c$.$ How much profit will Toys $"R"$ Us make if they sell $730,000$ units?

d$.$ Graph the Profit function. Make sure to label the Break Even point and fixed costs.

e$.$ Is there a way that Toys $"$R$"$ Us can lower their Break$-$Even Point? Explain.