Question

Suppose that you want to start a new business. You know that the revenue is a function of the number of widgets that your new company sells and that the cost is a function of the number of widgets that your new company produces. Given this information, what method would you use to solve for the break-even point? Explain what your answer means.

Answer 1

set them equal?

Answer 2

umm what do you mean? @satellite73

Answer 3

What is an imaginary number?

Answer 4

a n imaginary number is a number that when squared, will get a negative answer.

Answer 5

hello?

Answer 6

The cost of production (C) equals the variable cost of producing x widgets at $y each plus fixed costs from salaries and building operations (F).
C = $y.x + F
Revenue (R) from the sale of x widgets at $z each is:
R = $z.x
The break-even point is the point where R = C.

$y.x + F = $z.x