Question

Company A manufactures and sells gidgets. The owners have determined that the company has the monthly revenue and cost functions shown, such that x represents the number of gidgets sold.

R(x) = 16x
C(x) = 12x + 1,424

At what number of gidgets sold will the company break-even (the point where revenue equals cost)?

A.
356 gidgets
B.
119 gidgets
C.
480 gidgets
D.
51 gidgets

Answer 1

a

Explanation:

Answer 2

Option A. 356 gidgets

Explanation:

we have

R(x) ----> the monthly revenue function

C(x) ---> the monthly cost function

x ----> the number of gidgets sold

`R(x)=16x`

`C(x)=12x+1,424`

we know that

Break-even means that the revenue equals cost

so

`16x=12x+1,424`

solve for x

`16x-12x=1,424`

`4x=1,424`

`x=356\ gidgets`