Question

Break Even Analysis :The cost function and the revenue function for a certain firm are given by C(x) =14x +25,000 and R(x) =20x, Respectively. Find the break even point for the company.

Answer 1

To find the breack we can made the function equal so:

$14x+25000=20x$

and we solve for x so:

$\begin{gathered} 20x-14x=25000 \\ 6x=25000\cdot x=\frac{25000}{6} \\ x=4166.66 \end{gathered}$