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]
[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]