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kondor19780726 [428]
3 years ago
8

If the revenue for a certain product is $9.00 each and the company sells x products, then the revenue equation is R = 9x. If the

cost of producing the product is 50,000 plus $4.00 per piece, then the cost equation is C= 50000 + 4x How many products must be sold to breakeven?
Business
1 answer:
zvonat [6]3 years ago
3 0

Answer:

The company must sell 10,00 products to break even

Explanation:

If you use the approached suggested in the question,  you can solve for break even quantity by setting revenue to equal cost

R = C => 9x = 50,000 + 4x => 5x = 50,000 => x =10,000

<u>Double check: </u>

10,000 products sold as $9 would fetch $90,000 in revenue

Producing 10,000 products would incur 50,000 + 4 * 10,000 = $90,000 in total costs

=>The solution is correct

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