Question 1108193: 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 CequalsR.
Cequals12xplus36 comma 000 and Requals14x.
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 = 12x + 36000
r = 14x
when r = c is the break even point.
since r = 14x and c = 12x + 36000, then the break even point is when 14x = 12x + 36000
subtract 12x from both sides of this equation to get 14x - 12x = 36000.
combine like terms to get 2x = 36000.
divide both sides of this equation by 2 to get x = 18000.
that'a our answer.
the revenue will be equal to the cost when 18000 units are sold.
revenue = 14 * 18000 = 252000.
cost = 12 * 18000 + 36000 = 252000.
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