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 C and R are equal is called the break-even quantity, the number of units that produce zero profit. Find the break-even quantity when C=15x+36000 and R=18x.
How many units must be produced and sold in order to break even?
Answer provided by our tutors
let x = the number of units that produce zero profit that is C = R
15x+36000 = 18x
by solving we find
x = 12,000 units
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12,000 units must be produced and sold in order to break even.