how many units

Question

The point at which a company's costs equal its revenues is the break-even point. C represents the cost, in dollars, of x units of a 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=16x-36000 and r=14x

How many units must be produced and sold in order to break even?

Answer 1

C(x) = 16x - 36,000

 

R(x) = 14x

 

C(x) = R(x) ⇒ 16x - 36,000 = 14x

 

Just solve for x.

 

16x - 36,000 = 14x

 

2x = 36,000

 

x = 18,000