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?

Question

Business

Bryant Hansen

30 January, 14:26

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?

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Answers (1)

Know the Answer?

Clare Huff · Answer 1

The company must sell 10,00 products to break even

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