A business owner pays 1 dollars comma 200 per month in rent and a total of 120 dollars per hour in employee salaries for each hour the store is open. On average, the store brings in 200 dollars in net sales per hour. Which equations can be solved to determine the break-even point if C times x represents the cost function, R times x represents the revenue function, and x the number of hours per month the store is open?
Answer
A
C times x is equal to 1 comma 200 plus 120 x R x is equal to 200 x
B
C times x is equal to 200 x R x is equal to 1 comma 200 plus 120 x
C
C times x is equal to 1 comma 200 plus 120 R x is equal to 200 x
D
C times x is equal to 200 x R x is equal to 1 comma 200 plus 120
Explanation
The monthly cost includes fixed rent of $1,200 plus $120 in salaries for each hour the store is open, so C(x) = 1,200 + 120x. Sales bring in $200 per hour, so R(x) = 200x. These are the equations in choice A; setting them equal gives the break-even point.
AI-written and checked against the verified answer.