Find the break-even point for the firm whose cost function C and revenue function R are given.

C(x) = 5x + 10,000

R(x) = 15x

Question

Find the break-even point for the firm whose cost function C and revenue function R are given.

C(x) = 5x + 10,000

R(x) = 15x

ganeshie8 · Answer

if i remember correctly, break-even point is the point at which costs balance revenues

anonymous · Answer

i get my answer as 1,000

ganeshie8 · Answer

looks correct to me.

anonymous · Answer

but apparently that wrong, what i did was join the two together, 15x=5x+10,000

ganeshie8 · Answer

hmm why do you think its wrong ?

anonymous · Answer

im doing an online thing and when i submit it it says that x=1,000 is incorrect

ganeshie8 · Answer

they need to sell 1000 items until they make any profit.

ganeshie8 · Answer

from the R(x), we can see that price of each item is  $15

ganeshie8 · Answer

break-even point in dollars = 1000*15 = $ 15,000

all this means is, they need to make a sales revenue of $ 15,000 at which time they break-even...

anonymous · Answer

ok

anonymous · Answer

soo i would put 15,000 as the answer?

ganeshie8 · Answer

thats right! looks like break-even point is defined w.r.to DOLLARS. so $15,000 would be correct answer. eventhough 1000 items selling is also correct logically.. ..

anonymous · Answer

allright let me try it thank you that probably my only other choice

ganeshie8 · Answer

yw!! good luck :)