Final answer:
The revenue break-even point is the revenue amount at which total revenue equals total costs, indicating no profit or loss. The break-even revenue given the costs would be $950. The closest correct option among the provided choices is (c) $1,000.
Step-by-step explanation:
To determine the revenue break-even point, we need to understand that at this point, the total revenue equals the sum of variable costs and fixed costs, which means there is no profit or loss. The formula to calculate the break-even point in terms of sales dollars can be given by: Break-even Revenue = Fixed Costs + Variable Costs.
Based on the given information, the student's company's fixed costs amount to $200, and the variable costs are $750. So, the total costs amount to $950 ($200 + $750).Therefore, the minimum revenue needed to break even is $950. Since the provided options do not include this exact figure, and based on the context of the question, there seems to be a mismatch between the provided data and the options given. Among the available options, the closest higher amount to the computed break-even revenue would be the main answer, option c. $1,000.In conclusion, with the available choices, the break-even revenue would be option (c) $1,000, as this is the minimum revenue that surpasses the sum of the fixed and variable costs.