Solve the Problem $t$ Units Are Sold $t > 0$ , Is Given By

question 26

Multiple Choice

Solve the problem.
-The profit made when $t$ units are sold, $t > 0$ , is given by $P = t ^ { 2 } - 25 t + 156 .$ Determine the number of units to be sold in order for $\mathrm { P } < 0$ (a loss is taken) .

• A) \(12 < \mathrm { t } < 13\)
• B) \(t > 0\)
• C) \(t < 12\) or \(t > 13\)
• D) \(t = 12\) or \(t = 13\)

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of output or the level of business operations, including expenses like rent, wages, and insurance fees.

Rent Expense

The cost incurred from renting property or equipment for business or personal use, recognized as an expense on the income statement.

Margin of Safety

The difference between actual sales and the break-even point, used as a buffer against unpredictability in business performance.

Break-Even Point

The point at which total costs equal total revenue, meaning a business neither makes a profit nor incurs a loss.