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Sagot :
The break even point is at 500 baskets. The company must sell 500 baskets a month, at which point their revenue of $10,000 will cover their total costs of $10,000.
What is break even point?
In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total revenue are equal, or "even." Although opportunity costs have been paid and capital has received the risk-adjusted, expected return, there is no net loss or gain, and one has "broken even."
In this case we could probably solve the problem from the graph itself, but we can also solve it algebraically by setting the equations equal:
[tex]\begin{gathered}R(n)=C(n) \\20 n=6000+8 n\end{gathered}[/tex]
Subtract 8n from both sides:
[tex]12 n=6000[/tex]
Divide:[tex]n=\frac{6000}{12}=500[/tex]
Evaluate either function at this input: [tex]R(500)=C(500)=10,000[/tex]
The break even point is at 500 baskets. The company must sell 500 baskets a month, at which point their revenue of $10,000 will cover their total costs of $10,000.
To learn more about break even point visit:https://brainly.com/question/29063970
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