Question

The point at which a company's costs equal its revenues is the break-even point. C represents the cost, in dollars, of x

units of a 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 = 15x + 350 and R = 17.5x.
How many units must be produced and sold in order to break even?

Answer 1

To break even, the company must produce and sell 140 units.

Step-by-step explanation:

To find the number of units that must be produced and sold in order to break even, we need to set the cost (C) equal to the revenue (R) and solve for x.

Given that C = 15x + 350 and R = 17.5x, we can set up the equation 15x + 350 = 17.5x. Subtracting 15x from both sides, we get 350 = 2.5x. Dividing both sides by 2.5, we find that x = 140.

Therefore, in order to break even, the company must produce and sell 140 units.