The idea, step by step
Two rules must hold at once
A simultaneous solution satisfies both rules for the same input and output. Equate two output expressions, solve for the input, then substitute to find the output. A graph represents this shared solution as an intersection.
Parallel lines with different intercepts have no intersection. Equivalent equations describe the same line and have infinitely many shared points, subject to domain restrictions.
Break-even is zero profit
Revenue equals total cost at break-even. Positive profit requires revenue to be greater than cost. Include fixed costs in the cost rule rather than treating them as a per-item charge.
If quantities must be whole numbers, interpret the threshold. A non-integer solution may lie between two feasible sales quantities; the first profitable quantity is the next integer that makes profit positive.
A common trap
Reporting break-even as a positive profit.
Instead: At break-even profit is zero; the strict profit inequality needs a larger input.
See the thinking
Equal-cost plans
A costs dollars and B costs dollars. Find their equal-cost input.
- gives .
- Thus .
- Both costs are dollars.
First profitable sale
Revenue is 14 dollars per item; cost is dollars. Find break-even and the first profitable integer quantity.
- Set .
- Then , so break-even is 10 items.
- Profit is , positive for .
Check your understanding
Solve .
Show answer
; each side equals 29.
Subtract to get .
Your turn
6 questions · 13 marks · Work at your own pace.
Read the questions online
- Solve and .2 marks
- Plans cost and dollars. Find equal usage and cost.2 marks
- Explain the solutions of and .2 marks
- Compare and .2 marks
- Revenue is and cost is dollars. Find break-even.2 marks
- Revenue is and cost is . Find the smallest quantity giving at least 35 dollars profit.3 marks
Read the worked solutions
Equivalent correct methods earn the corresponding marks. Include units where asked.
- Solve and .2 marks
Equate: .
Then , .
. - Plans cost and dollars. Find equal usage and cost.2 marks
Equate to get .
Substitute .
6 h, at 34 dollars. - Explain the solutions of and .2 marks
Same gradient but distinct intercepts give parallel lines.
No solution. - Compare and .2 marks
Divide the second equation by 2.
It becomes the first equation.
Infinitely many common solutions. - Revenue is and cost is dollars. Find break-even.2 marks
gives .
10 items. - Revenue is and cost is . Find the smallest quantity giving at least 35 dollars profit.3 marks
Profit .
Solve , so .
15 items.
Curriculum reference & lesson scope
SACE Board of South Australia
Stage 1 General Mathematics: algebraic and graphical modelling of linear/exponential change, with interpretation and evaluation.
Official curriculum source ↗