Break-Even Point The break-even point for a company is where costs equal revenues. Therefore the break-even point is the solution to a system of two equations. For each of the following, C represents cost in dollars to produce x items and R represents revenue in dollars from selling x items. C = 10x + 12, 000 121. R= 20x a. What are the company's fixed costs? b. How much does it cost to make one unit of the product? C. * Find the break-even point and interpret each coordinate in context.

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
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Break-Even Point The break-even point for a company is where
costs equal revenues. Therefore the break-even point is the solution to a system of two
equations. For each of the following, C represents cost in dollars to produce x items and R
represents revenue in dollars from selling x items.
10x + 12, 000
C =
121.
R=20x
a. What are the company's fixed costs?
b. How much does it cost to make one unit of the product?
* Find the break-even point and interpret each coordinate in context.
C.
Transcribed Image Text:Break-Even Point The break-even point for a company is where costs equal revenues. Therefore the break-even point is the solution to a system of two equations. For each of the following, C represents cost in dollars to produce x items and R represents revenue in dollars from selling x items. 10x + 12, 000 C = 121. R=20x a. What are the company's fixed costs? b. How much does it cost to make one unit of the product? * Find the break-even point and interpret each coordinate in context. C.
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