High School

Which of these pairs of costs and revenues could a company have if it's at its break-even point?

A. Costs of [tex]$6000[/tex] and revenues of [tex]$6000[/tex]
B. Costs of [tex]$6000[/tex] and revenues of [tex]$7000[/tex]
C. Costs of [tex]$5000[/tex] and revenues of [tex]$7000[/tex]
D. Costs of [tex]$5000[/tex] and revenues of [tex]$6000[/tex]

Answer :

At the break-even point, the company's revenues are exactly equal to its costs. In other words, we require

[tex]$$\text{Revenues} = \text{Costs}.$$[/tex]

Let's analyze each option:

1. Option A: Costs = \[tex]$6000 and Revenues = \$[/tex]6000.
Since \[tex]$6000 = \$[/tex]6000, the condition is satisfied.

2. Option B: Costs = \[tex]$6000 and Revenues = \$[/tex]7000.
Here, revenues exceed costs, so it's not a break-even situation.

3. Option C: Costs = \[tex]$5000 and Revenues = \$[/tex]7000.
Again, revenues exceed costs, so it is not break-even.

4. Option D: Costs = \[tex]$5000 and Revenues = \$[/tex]6000.
Here as well, revenues exceed costs, and it is not a break-even point.

Since only Option A meets the condition where revenues equal costs, the correct answer is:

[tex]$$\textbf{A. Costs of \$6000 and revenues of \$6000.}$$[/tex]