Question

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?

Answer 1

The company must sell 10,00 products to break even

Step-by-step 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

Double check:

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