Problema Solution

If x units of a product cost C dollars to manufacture and earn revenue of R dollars, the value of x where the expressions for C and R equal is called the break-even quantity, the number of units that produce zero profit. Find the break-even quantity when C=14x+20000 and R=16x. How many units must be produced and sold in order to break even?

Answer provided by our tutors

since r and C are equal

C = R

14x+5600 = 18x

5600 = 18x - 14 x

5600 = 4x

x= 1400