Solve the Problem $C ( x )$ , and the Revenue Function

question 36

Multiple Choice

Solve the problem.
-Given the cost function, $C ( x )$ , and the revenue function, $R ( x )$ , find the dollar amount coming in and going out at the break-even point. Round to the nearest dollar if necessary.
$$\begin{array} { l } C ( x ) = 8000 x + 90,000 \\R ( x ) = 17,000 x\end{array}$$

• A) \(\$ 170,000\)
• B) \(\$ 10\)
• C) \(\$ 80,000\)
• D) \(\$ 61,200\)

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess the profitability of an investment.

Straight-Line Depreciation

Straight-line depreciation is a method that allocates an equal portion of an asset's cost to each year of its useful life for accounting and tax purposes.

Net Present Value

A calculation used to assess the profitability of an investment, considering the time value of money by discounting future cash flows.

Capital Budgeting

The method of arranging and controlling an organization's long-term financial commitments to key projects or assets.