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Answer :
To determine which pair reflects the company's financial state at its break-even point, we need to understand what a break-even point means. At this point, total costs are equal to total revenues, meaning the company is neither making a profit nor a loss.
Let's evaluate each option:
- Option A: Costs of [tex]$5000 and revenues of $[/tex]7000
- Here, revenues exceed costs, which means the company is making a profit, not at break-even.
- Option B: Costs of [tex]$5000 and revenues of $[/tex]6000
- In this scenario, revenues are greater than costs, indicating a profit rather than a break-even.
- Option C: Costs of [tex]$6000 and revenues of $[/tex]7000
- Similar to the previous options, revenues are higher than costs. This situation results in a profit, not a break-even point.
- Option D: Costs of [tex]$6000 and revenues of $[/tex]6000
- Here, costs are exactly equal to revenues. This is the definition of breaking even, as there is no profit or loss.
Therefore, the correct answer is option D, where costs equal revenues at $6000.
Let's evaluate each option:
- Option A: Costs of [tex]$5000 and revenues of $[/tex]7000
- Here, revenues exceed costs, which means the company is making a profit, not at break-even.
- Option B: Costs of [tex]$5000 and revenues of $[/tex]6000
- In this scenario, revenues are greater than costs, indicating a profit rather than a break-even.
- Option C: Costs of [tex]$6000 and revenues of $[/tex]7000
- Similar to the previous options, revenues are higher than costs. This situation results in a profit, not a break-even point.
- Option D: Costs of [tex]$6000 and revenues of $[/tex]6000
- Here, costs are exactly equal to revenues. This is the definition of breaking even, as there is no profit or loss.
Therefore, the correct answer is option D, where costs equal revenues at $6000.
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