The point at which a company\'s profits equal zero is called the company\'s brea

Question

The point at which a company's profits equal zero is called the company's break-even point.

The point at which a company's profits equal zero is called the company's break-even point. Let R represent a company's revenue, let C represent the company's costs, and let x represent the number of units produced and sold each day. R(x) = 50x C(x) = 32.5x - 52,500 Find die firm's break-even point, that is. find x so that R = C Find the values of x such diat R(x) > C(x). Tins represents die number of units that the company must sell to earn a profit.

Explanation / Answer

Solution :

(a) To Find the Break even point We will equate R(x) = C(x)

50x = 32.5x- 52500

We will combine the like terms ..Or we will subtract 32.5 x from both sides

We get 50x -32.5 x= 32.5x - 32.5 x -52500

We get 17.5 x = -52500

x= -3000 ( x represent the number of units which cannot be negative )

Solution to b part

R(x) > C(x)

50x >32.5x- 52500

Again we will subtract the 32.5 x from both sides we will get

17.5 x> -52500

Now we will divide by 17.5 x both sides

x> -3000

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