Given the Cost Function, C(x), and the Revenue Function, R(x) $\begin{array} { l } C ( x ) = 1.3 x + 1400 \\R ( x ) = 2.3 x\end{array}$

question 139

Multiple Choice

Given the cost function, C(x) , and the revenue function, R(x) , find the number of units x that must be sold to break even.
- $\begin{array} { l } C ( x ) = 1.3 x + 1400 \\R ( x ) = 2.3 x\end{array}$

• A) 425 units
• B) 1420 units
• C) 1400 units
• D) 1410 units

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Definitions:

Variable Cost

Costs that vary directly with the level of production or service activity.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.

Period Cost

An expense that is not directly tied to the production process but rather incurred over a specific time period.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.