The point at which a company’s costs equals its revenues is the break-even point. C represents the cost, in dollars, of x units of 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 = 4x +5000 and R = 14x

Respuesta :

For this case we have the following equations:
 C = 4x +5000
 R = 14x
 What we must do in this case is to find the value of x such that R = C.
 We have then:
 4x +5000 = 14x
 Clearing x:
 14x - 4x = 5000
 10x = 5000
 x = 5000/10
 x = 500
 Answer:
 the number of units that must be produced and sold in order to break even are:
 x = 500