Question

Which of these pairs of costs and revenues could a company have if it's at its

break-even point?

Answer 1

Costs of $6,000 and revenues of $6,000

Explanation:

Answer 2

At break even cost = revenue

Explanation:

A company is said to be at break even if the cost of producing an item is equal to the revenue generated from the sell of that item, that means there is no loss or gain.

If the cost function C(x) = 200 + 10x and the revenue function R(x) = 60x - x², where x is the amount of items produced. At break even, R(x) = C(x)

60x - x² = 200 + 10x

x² - 60x + 10x + 200 = 0

x² - 50 x + 200 = 0

x = 46 or x = 4 is the break even point