Question

1. What is it called when the expenses and the revenue are equal, so there is no profit or loss ?

2. A company has determined that its expense and revenue functions are
E=- 1040p + 91,520 and R = -260? + 15,600p - 108,160.

At which price points can the company expect to break even?

Answer 1

1. When the expenses and the revenue are equal, so there is no profit or loss, it is called the "break-even point."

2. To find the break-even point, we need to set the expense and revenue functions equal to each other and solve for p:

- 1040p + 91,520 = -260p + 15,600p - 108,160
- 1040p + 91,520 = 14,340p - 108,160
- 15,380p = -16,640
p = 1.08

Therefore, the company can expect to break even at a price point of $1.08 per unit.