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]$5000[/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]$6000[/tex] and revenues of [tex]$6000[/tex]

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]