Answer :
At the break-even point, a company’s costs equal its revenues. This means that
[tex]$$\text{costs} = \text{revenues}$$[/tex]
Let’s analyze each option:
1. For Option A, the costs are \[tex]$6000 and the revenues are \$[/tex]6000. Since
[tex]$$6000 = 6000,$$[/tex]
the company breaks even.
2. In Option B, the costs are \[tex]$6000 and the revenues are \$[/tex]7000. Here, the revenues exceed the costs, so the company would be making a profit rather than breaking even.
3. In Option C, the costs are \[tex]$5000 and the revenues are \$[/tex]6000. Again, the revenues exceed the costs, meaning there would be a profit.
4. For Option D, the costs are \[tex]$5000 and the revenues are \$[/tex]7000. The difference is larger, so the company is making a profit.
Since break-even occurs when the costs equal the revenues, the only pair that meets this condition is Option A.
Thus, the correct answer is Option A: Costs of \[tex]$6000 and Revenues of \$[/tex]6000.
[tex]$$\text{costs} = \text{revenues}$$[/tex]
Let’s analyze each option:
1. For Option A, the costs are \[tex]$6000 and the revenues are \$[/tex]6000. Since
[tex]$$6000 = 6000,$$[/tex]
the company breaks even.
2. In Option B, the costs are \[tex]$6000 and the revenues are \$[/tex]7000. Here, the revenues exceed the costs, so the company would be making a profit rather than breaking even.
3. In Option C, the costs are \[tex]$5000 and the revenues are \$[/tex]6000. Again, the revenues exceed the costs, meaning there would be a profit.
4. For Option D, the costs are \[tex]$5000 and the revenues are \$[/tex]7000. The difference is larger, so the company is making a profit.
Since break-even occurs when the costs equal the revenues, the only pair that meets this condition is Option A.
Thus, the correct answer is Option A: Costs of \[tex]$6000 and Revenues of \$[/tex]6000.
