The Sony Corp computed their monthly expense equation as E=11q+76,000. Its products will be sold to retailers at a wholesale price of R=$14q. How many items must be sold to reach the breakeven point? (hint: E=R)

Respuesta :

Using the concept of break even point, it is found that 25334 items must be sold to reach the break even point.

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The expense equation is:

[tex]E(q) = 11q + 76000[/tex]

The revenue equation is:

[tex]R(q) = 14q[/tex]

The break even point is the value of q for which expense and revenue are equal, thus:

[tex]R(q) = E(q)[/tex]

[tex]14q = 11q + 76000[/tex]

[tex]3q = 76000[/tex]

[tex]q = \frac{76000}{3}[/tex]

[tex]q = 25333.33[/tex]

Rounding up, 25334 items must be sold to reach the break even point.

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