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A costs line and a sales line are drawn on the same grid for one business. What does the point where the two lines cross show?
AThe amount at which costs and sales match
BThe amount at which the profit is greatest
CThe amount at which the rent is fully paid
DThe amount at which the business must close
Answer & Solution
Correct answer: A. The amount at which costs and sales match
1. A crossing point is where both lines give the same value for the same quantity.
2. Here one line gives costs and the other gives money coming in, so at that point the two are equal.
3. Selling that many means the business neither gains nor loses, which is why it is called breaking even.
4. Profit keeps growing past that point rather than peaking there, so option B misreads the picture.
5. Rent is only one part of the fixed costs, so option C names too little.
6. Breaking even is the point where a business starts to gain, so option D reads it backwards.
_Source: OpenStax College Algebra (CC BY 4.0), Ch 7 "Systems of Equations and Inequalities", section 7.1 Systems of Linear Equations: Two Variables_
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