Problem

Breaking even. Capital Records Company plans to produce a CD by the popular rapper Rapit....

Breaking even. Capital Records Company plans to produce a CD by the popular rapper Rapit. The fixed cost is $500,000, and the variable cost is $0.50 per CD. The company sells each CD to record stores for $5. Let x represent the number of CDs produced and sold.

a. How many disks must be sold for the company to break even?

b. How many CDs must be sold for the company to make a profit of $750,000?

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