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A costs rule is C(x) = 0.75x + 24000 and a sales rule is R(x) = 1.95x, both in dollars. How many units must be sold to break even?
A18,000 units
B20,000 units
C24,000 units
D32,000 units
Answer & Solution
Correct answer: B. 20,000 units
1. Breaking even means the costs equal the money coming in, so set 0.75x + 24000 = 1.95x.
2. Take 0.75x from both sides to get 24000 = 1.2x.
3. Divide both sides by 1.2 to get x = 20000 units.
4. Check the costs: 0.75 dollars times 20,000 is 15,000 dollars, plus 24,000 dollars, which is 39,000 dollars.
5. Check the sales: 1.95 dollars times 20,000 is 39,000 dollars, so the two match.
6. Option D comes from dividing 24,000 by 0.75, which ignores the money coming in.
7. Option C simply repeats the fixed cost as though it were a count of units.
8. Option A comes from dividing 24,000 by 1.33, a rounded gap between the two rates.
_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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