Question

The following graph displays the cost and revenue functions for Jake’s homemade wicker baskets. How many baskets must Jake sell to break even?
A graph has baskets on the x-axis and cost in dollars times 10 on the y-axis. The cost line goes through (0, 4) and (8, 10). The revenue line goes through (0, 0) and (8, 10). The lines intersect at (8, 10).
a.
10
b.
8
c.
4
d.
0

Answer 1

Break-even is where cost = revenue, i.e. where the two lines intersect. They intersect at (8, 10), so Jake must sell 8 baskets.

Answer: b. 8