Question

Worth 10 points

Let C represent the cost in dollars and R represent the revenue in dollars. What is the break-even point? Use a table to help if necessary.

C=15x+150
R=45x

Answer 1

x = 5

When you sell 5 units, the revenue and the production cost would be equal.

Explanation:

Given

C represents the cost in dollars

• 
  `C=15x+150`

R represents the revenue in dollars

• 
  `R=45x`

To determine

What is the break-even point?

Break-even point:

We know that the cost gets equal to revenue at the break-even point.

i.e.

`C = R`

substitute C=15x+150 and R=45x

`15x+150 = 45x`

`45x - 15x = 150`

`30x = 150`

divide both sides by 30

`(30)/(30)x\:=\:(150)/(30)`

`x = 5`

Therefore, when you sell 5 units, the revenue and the production cost would be equal.