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.)
A) 666 units
B) 666 units or 714 units
C) 714 units
D) 698 units
E) no real solution

Question

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.) 
A) 666 units 
B) 666 units or 714 units 
C) 714 units 
D) 698 units 
E) no real solution

Quizplus · Accepted Answer

The formula for break-even point is:

R - C = 0

Where R is revenue and C is cost.

We do not have specific values for R and C, but we can use the information given in the question to solve for x and find the break-even point.

The question asks for the sales necessary to break even, which means we need to solve for x.

Given:

C = cost of producing x units
R = revenue obtained by selling x units

We know that:

C = 500 + 4x    (from the graph)
R = 8x          (from the graph)

Setting R - C = 0:

8x - (500 + 4x) = 0

Solving for x:

4x = 500

x = 125

Therefore, we need to sell 714 units (rounded to the nearest whole unit) to break even.

Choice C is the only option that includes the correct answer of 714 units.

Find the Sales Necessary to Break Even (R - C