Answer :
To determine if a company is at its break-even point, we use the definition that at break-even,
[tex]$$\text{Revenues} = \text{Costs}.$$[/tex]
Let's analyze each pair:
1. For costs of \[tex]$5000 and revenues of \$[/tex]6000, we have:
[tex]$$5000 \neq 6000.$$[/tex]
2. For costs of \[tex]$5000 and revenues of \$[/tex]7000, we have:
[tex]$$5000 \neq 7000.$$[/tex]
3. For costs of \[tex]$6000 and revenues of \$[/tex]7000, we have:
[tex]$$6000 \neq 7000.$$[/tex]
4. For costs of \[tex]$6000 and revenues of \$[/tex]6000, we have:
[tex]$$6000 = 6000.$$[/tex]
Since only when the costs equal the revenues is the company at the break-even point, the correct pair is:
[tex]$$\textbf{Costs = \$6000 and Revenues = \$6000.}$$[/tex]
Thus, the correct answer is option D.
[tex]$$\text{Revenues} = \text{Costs}.$$[/tex]
Let's analyze each pair:
1. For costs of \[tex]$5000 and revenues of \$[/tex]6000, we have:
[tex]$$5000 \neq 6000.$$[/tex]
2. For costs of \[tex]$5000 and revenues of \$[/tex]7000, we have:
[tex]$$5000 \neq 7000.$$[/tex]
3. For costs of \[tex]$6000 and revenues of \$[/tex]7000, we have:
[tex]$$6000 \neq 7000.$$[/tex]
4. For costs of \[tex]$6000 and revenues of \$[/tex]6000, we have:
[tex]$$6000 = 6000.$$[/tex]
Since only when the costs equal the revenues is the company at the break-even point, the correct pair is:
[tex]$$\textbf{Costs = \$6000 and Revenues = \$6000.}$$[/tex]
Thus, the correct answer is option D.
