High School

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Which of these pairs of costs and revenues could a company have if it's at its break-even point?

A. Costs of [tex]$5000[/tex] and revenues of [tex]$7000[/tex]
B. Costs of [tex]$6000[/tex] and revenues of [tex]$7000[/tex]
C. Costs of [tex]$6000[/tex] and revenues of [tex]$6000[/tex]
D. Costs of [tex]$5000[/tex] and revenues of [tex]$6000[/tex]

Answer :

At the break-even point, a company's total costs equal its total revenues. This means we need to find the option where:

[tex]$$
\text{Costs} = \text{Revenues}
$$[/tex]

Let's analyze each option:

1. Option A: Costs are \[tex]$5000 and revenues are \$[/tex]7000. Since
[tex]$$
5000 \neq 7000,
$$[/tex]
this option is not at the break-even point.

2. Option B: Costs are \[tex]$6000 and revenues are \$[/tex]7000. Again, we have
[tex]$$
6000 \neq 7000,
$$[/tex]
which means this option is not break-even.

3. Option C: Costs are \[tex]$6000 and revenues are \$[/tex]6000. Here,
[tex]$$
6000 = 6000,
$$[/tex]
so this option meets the break-even condition.

4. Option D: Costs are \[tex]$5000 and revenues are \$[/tex]6000. Since
[tex]$$
5000 \neq 6000,
$$[/tex]
this option is also not at break-even.

Since only Option C has equal costs and revenues, it is the correct answer.

Thus, the company is at its break-even point when it has costs of \[tex]$6000 and revenues of \$[/tex]6000.

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