The point at which a company’s costs equals its revenues is the break-even point. C represents the cost, in dollars, of x units of product and R represents the revenue, in dollars, from the sale of x units. Find the number of units that must be produced and sold in order to break even. That is, find the value of x for which C = R. C = 4x +5000 and R = 14x
For this case we have the following equations: C = 4x +5000 R = 14x What we must do in this case is to find the value of x such that R = C. We have then: 4x +5000 = 14x Clearing x: 14x - 4x = 5000 10x = 5000 x = 5000/10 x = 500 Answer: the number of units that must be produced and sold in order to break even are: x = 500
