Further, if the break even point proves to be unrealistic, then another
model could be tried or the assumptions regarding cash flow may be modified Remark From (3), we also have
dP
s
b
d x =
−
This means that rate of change of P with respect to x depends on the quantity
s – b, which is the difference of selling price and the variable cost of each product Thus, in order to gain profit, this should be positive and to get large gains, we need to
produce large quantity of the product and at the same time try to reduce the variable
cost Example 7 Let a tank contains 1000 litres of brine which contains 250 g of salt per
litre