Question

The table below shows possible cost and revenue equations for a manufacturer of cameras.
Cost
65.16 n + 1,500
I
Cost
35.79 n + 6,700
II
Revenue
98.75 n
III
Revenue
56.95 n
IV

Which of the following pairs of equations will never break even?
a.
I and III
b.
I and IV
c.
II and III
d.
II and IV



Please select the best answer from the choices provided


A
B
C
D

Answer 1

B

For break-even solve a n + b = c n (so n = -b/(a - c)). For I & IV: n = -1500/(65.16 − 56.95) = -1500/8.21 ≈ -182.7 (negative), so no nonnegative production breaks even. The other pairs give positive n.