Break even point

[10mrinde]

Find the sales necessary to break even (R-C=0) for the cost C of producing
x units and the revenue R obtained by selling x units. (Round to the
nearest whole unit.)

C=7.6(square root of x)+ 3000 R= 5.9x

Multiple choice:

a) 480 units
b) 480 units or 538 units
c) 528 units
d) 519 units
e) no solution

 

[mmm4444bot]

R - C = 0 means R = C.

The phrase "break even" means that revenue is equal to cost, too.

So, set the expressions that define R and C equal to one another. Then you have an equation in x for which you can solve to find any values of x that make R = C.

OR, simply compare the values of R and C after substituting the multiple choices for x until you figure it out.

Either way, if you need more help with this exercise, then please post whatever work you're able to do and try to say something about why you're unsure or stuck.

Also, please read the post titled "Read Before Posting", if you have not already done so.

Cheers,

~ Mark