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If x units of a product cost C dollars to make and revenue of R dollars, the value of x where the expression for C and R are equal is called the break even quantity, the number of units that produce zero profit. C=16x-20000, R=14x

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Set C = R
This means 16X - 20000 = 14X
Add -16X to both sides
-20000 = -2X
Divide both sides by -2
10000 = X

This means that the break even point is 10000 units.

Posted on Jan 27, 2011

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