Question

Solve the problem. Find the break-even point for the given cost and revenue equations. Round to the nearest whole unit. C = 94n 534,000 R = 168n

a) 74
b) 2038
c) 262
d) 7216

Answer 1

To find the break-even point, we set the cost equation equal to the revenue equation and solved for n. The break-even point occurs at approximately 7216 units.

Step-by-step explanation:

To find the break-even point for the given cost and revenue equations, we set the cost equation C equal to the revenue equation R and solve for n.

The cost equation is: C = 94n + 534,000

The revenue equation is: R = 168n

At the break-even point, C = R:

94n + 534,000 = 168n

To solve for n, we subtract 94n from both sides:

534,000 = 168n - 94n

534,000 = 74n

Now we divide both sides by 74:

n = 534,000 / 74

n ≈ 7216 (rounded to the nearest whole unit)

Therefore, the break-even point is approximately 7216 units.