Question

The point at which a company’s costs equals its revenues is the break-even point. C represents the cost, in dollars, of x units of 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 C = R. C = 4x +5000 and R = 14x

Answer 1

For this case we have the following equations:
C = 4x +5000
R = 14x
What we must do in this case is to find the value of x such that R = C.
We have then:
4x +5000 = 14x
Clearing x:
14x - 4x = 5000
10x = 5000
x = 5000/10
x = 500
Answer:
the number of units that must be produced and sold in order to break even are:
x = 500