Question

A business owner pays $1,200 per month in rent and a total of $120 per hour in employee salary for each hour the store is open. On average, the store brings in $200 in net sales per hour.

Which equations can be solved to determine the break-even point if C(x) represents the cost function, R(x) represents the revenue function, and x the number of hours per month the store is open?

C(x) = 1,200+120x; R(x) = 200x
C(x) = 1,200+120; R(x) = 200x
C(x) = 200x; R(x) = 1,200+120x
C(x) = 200x; R(x) = 1,200+120

Answer 1

C(x) = 1,200 + 120x; R(x) = 200x.

Set them equal to find break-even: 1,200 + 120x = 200x → 1,200 = 80x → x = 15 hours.