Question

2. A company manufactures a certain item and sells it online. The company has a business model where the cost C, in dollars, to make xitems is given by the equation C=2.5x+21 and the revenue R, in dollars, made by selling xitems is given by the equation R=6x. The break even point is the point where the cost and the revenue intersect. How many items must the company sell to break even?

Answer 1

Explanation:

6 items

Explanation:

The break-even point is the point when the cost is equal to the revenue, so we can formulate the following equation:

C = R

2.5x + 21 = 6x

Then, we can solve for x, so:

2.5x + 21 - 2.5x = 6x - 2.5x

21 = 3.5x

21/3.5 = 3.5x/3.5

6 = x

Therefore, the company needs to make 6 items to break even.