Florence's Restaurant estimates that its total costs of providing Q meals per month is given by TC = 8,000 + 5Q.If Florence charges $9 per meal, what is its break even level of output?
A)4,000 meals
B)571.43 meals
C)888.89 meals
D)1,600 meals
E)2,000 meals

Question

Quizplus · Accepted Answer

To find the break-even level of output, set total revenue equal to total costs: 9Q = 8,000 + 5Q. Solving for Q gives Q = 2,000 meals.

Florence's Restaurant Estimates That Its Total Costs of Providing Q