The total cost and the total revenue of a company that produces and sells x units of particular product are respectively $C(x) = 5x + 350$ and $R(x) = 50x – x^2$. Find the breakeven values.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → $x=10$ units and $x=35$ units
At breakeven values, $R(x) = C(x)$
$⇒ 50x - x^2 = 5x + 350$
$⇒ x^2 - 45x + 350 = 0$
$⇒ (x-10) (x -35) = 0$
$⇒x= 10\, or\, 35$
Hence, the breakeven values are $x = 10$ and $x = 35$.