Question

The following graph represents the cost and revenue functions for custom-made computers. How many computers have been sold at the break-even point?
A graph has sales on the x-axis and cost times 100 on the y-axis. The cost line goes through (0, 5) and (12, 9). The revenue line goes through (0, 0) and (12, 9). The lines intersect at (12, 9).
a.
12
b.
9
c.
5
d.
0

Answer 1

Break-even is where cost = revenue, i.e. where the two lines intersect. They intersect at x = 12, so 12 computers have been sold. Answer: a.