Answer :
To determine which option represents a break-even point, we need to find the pair where the costs equal the revenues. At the break-even point, the condition is:
[tex]$$\text{costs} = \text{revenues}.$$[/tex]
Let's check each option:
1. Option A:
Costs = \[tex]$5000, Revenues = \$[/tex]6000
Since \[tex]$5000 is not equal to \$[/tex]6000, this option is not at the break-even point.
2. Option B:
Costs = \[tex]$6000, Revenues = \$[/tex]7000
Since \[tex]$6000 is not equal to \$[/tex]7000, this option is not at the break-even point.
3. Option C:
Costs = \[tex]$5000, Revenues = \$[/tex]7000
Since \[tex]$5000 is not equal to \$[/tex]7000, this option is not at the break-even point.
4. Option D:
Costs = \[tex]$6000, Revenues = \$[/tex]6000
Here, the costs and revenues are equal, so the company is exactly at the break-even point.
Thus, the correct option is:
[tex]$$\textbf{D: Costs of } \$6000 \textbf{ and Revenues of } \$6000.$$[/tex]
[tex]$$\text{costs} = \text{revenues}.$$[/tex]
Let's check each option:
1. Option A:
Costs = \[tex]$5000, Revenues = \$[/tex]6000
Since \[tex]$5000 is not equal to \$[/tex]6000, this option is not at the break-even point.
2. Option B:
Costs = \[tex]$6000, Revenues = \$[/tex]7000
Since \[tex]$6000 is not equal to \$[/tex]7000, this option is not at the break-even point.
3. Option C:
Costs = \[tex]$5000, Revenues = \$[/tex]7000
Since \[tex]$5000 is not equal to \$[/tex]7000, this option is not at the break-even point.
4. Option D:
Costs = \[tex]$6000, Revenues = \$[/tex]6000
Here, the costs and revenues are equal, so the company is exactly at the break-even point.
Thus, the correct option is:
[tex]$$\textbf{D: Costs of } \$6000 \textbf{ and Revenues of } \$6000.$$[/tex]