Question 1108029: The point at which a company's costs equal its revenues is the break-even point. C represents the cost, in dollars, of x units of a 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 Cequals
R.
Cequals
14xplus64 comma 000
and Requals
18
x.
How many units must be produced and sold in order to break even?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! c = 14x + 64,000
r = 18x
c = cost
r = revenue
you break even when c = r
that gets you 14x + 64,000 = 18x
subtract 14x from both sides of this equation to get 64,000 = 18x - 14x
combine like terms to get 64,000 = 4x
divide both sides of this equation by 4 to get 64,000 / 4 = x
simplify to get 16,000 = x.
they would have to sell 16,000 units to break even.
revenue = 18 * 16,000 = 288,000
cost = 14 * 16,000 + 64,000 = 288,000.
if they sell less than 16,000 units, they lose money.
if they sell more than 16,000 units, the make money.
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