Find the Break-Even Point for the Firm Whose Cost Function

question 176

Essay

Find the break-even point for the firm whose cost function C and revenue function R are given.
C(x) = 12x + 7,000; R(x) = 19x
For a break-even operation, the firm should manufacture __________ units of its product,
resulting in a break-even revenue of $ __________.

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Definitions:

Retained Use

The continued use of an asset by its owner instead of selling or replacing it.

Basic Earnings Per Share

A measure of a company's profitability, calculated by dividing net income by the average number of common shares outstanding during the period.

Income Available

The amount of net income left over for the company after it has paid out dividends to its shareholders.

Common Shareholders

Individuals or entities that own shares of a company's common stock, granting them rights to vote on corporate matters and receive dividends.