Find the Sales Necessary to Break Even (R - C

question 48

Multiple Choice

Find the sales necessary to break even (R - C = 0) for the cost C of producing x units and the revenue R obtained by selling x units. (Round to the nearest whole unit.)

• A) 782 units
• B) 782 units or 852 units
• C) 852 units
• D) 831 units
• E) no real solution

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Definitions:

Marginal Cost

The additional expense incurred from producing and selling one more unit of a good or service.

Profits

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Output

The total amount of goods or services produced by a company, industry, or economic system.

Marginal Costs

The additional cost incurred to produce an extra unit of a product or service.