Question

Company A manufactures and sells gidgets. The owners have determined that the company has the monthly revenue and cost functions shown, such that x represents the number of gidgets sold.

R(x) = 16x
C(x) = 12x + 1,424

At what number of gidgets sold will the company break-even (the point where revenue equals cost)?

Answer 1

Considering the given equations for revenue and cost, the company will break-even when 356 widgets are sold.

What is the break-even point?

The break-even point is the value of x for which:

R(x) = C(x).

In this problem, the functions are:

• R(x) = 16x.

• C(x) = 12x + 1424.

Hence:

R(x) = C(x)

16x = 12x + 1424

4x = 1424

x = 1424/4

x = 356

The company will break-even when 356 widgets are sold.

More can be learned about the break-even point of a company at https://brainly.com/question/9212451

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