10
Answer: BSet 15: Systems of Equations (Advanced)
Explanation
A business sells product A at $40 each and product B at $25 each. Fixed costs are $800. How many of product A must be sold (assuming no product B is sold) to break even?
A.
15 units
B.✓ Correct
20 units
C.
25 units
D.
32 units
Detailed Explanation
Choice B is correct. Choice B is the correct answer. Break-even when Revenue = Fixed Costs (no variable costs given, so we assume none). Let = units of product A sold. Equation: $$$40x = 800x = 20$$ Solution: 20 units of product A Verification: Revenue = 40(20) = 80040(15) = 600 < 80040(25) = 1000 > 80040(32) = 1280 > 800$ (profit).
Key Steps:
•
The correct answer is 20 units
Why others are wrong:
A: Choice A is incorrect and may result from a calculation error.
C: Choice C is incorrect and may result from a calculation error.
D: Choice D is incorrect and may result from a calculation error.
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