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Break Even Analysis of a 2014 Chevy Silverado High Country

By Luke, Alex, Jenna

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Problem

Chevrolet is selling their new 2014 Silverado High Country for $48,475 per vehicle. The base cost of producing the truck is $21,340 plus a cost of $1.46 million. Find the break even point and the profit or loss of selling 25 trucks and 100 trucks.

http://usnews.rankingsandreviews.com/cars-trucks/Chevrolet_Silverado-1500/ (source)

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Production

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Equations

C(x)= 21,340x + 1,460,000

R(x)= 48,475x

P(x)= 27,135x - 1,460,000

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Solving

http://www.educreations.com/lesson/view/silverado-high-country/14044035/?s=WBnqJ2&ref=app

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Solution

The break even point of this equation is 54 trucks. They must sell 54 trucks before they make a profit. The profit from the sale of 25 trucks is a loss of $781,625, and from the sale of 100 trucks is a profit of $1,253,500.