If the total cost and total revenue of a company that produces and sells units of a particular product are and respectively, then which of the following is/are the breakeven values:
(A)
(B)
(C)
(D)
Choose the correct answer from the options given below:
If the total cost and total revenue of a company that produces and sells units of a particular product are and respectively, then which of the following is/are the breakeven values:
(A)
(B)
(C)
(D)
Choose the correct answer from the options given below:
Solution
Breakeven occurs when Total Cost equals Total Revenue.
Given:
Cost function:
Revenue function:
At breakeven:
Factoring the quadratic equation:
Two numbers that multiply to give 350 and add to give -45 are -35 and -10.
or
The breakeven values are and .
Checking the given options:
(A) ✓
(B) ✗
(C) ✗
(D) ✗
Only option (A) is a breakeven value among the choices given.
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