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

Answer 1

Option C. 356 gidgets

Explanation:

we have R(x) ----> the monthly revenue function C(x) ---> the monthly cost function x ----> the number of gidgets sold we know that Break-even means that the revenue equals cost so solve for x