The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells binoculars. Use the information in the figure to answer the question.

-Fewer than how many binoculars must be produced and sold for the company to have a profit loss?
A)2700 binoculars
B)750 binoculars
C)2250 binoculars
D)1500 binoculars

Question

The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells binoculars. Use the information in the figure to answer the question.
 
-Fewer than how many binoculars must be produced and sold for the company to have a profit loss?
A)2700 binoculars 
B)750 binoculars 
C)2250 binoculars 
D)1500 binoculars

Quizplus · Accepted Answer

To determine the point at which the company would experience a profit loss, we need to understand the break-even point—the point at which total costs equal total revenue, meaning there is no profit or loss. Selling fewer units than the break-even point results in a loss. Without specific financial details (like cost per unit, selling price, or fixed costs), we can't calculate the exact break-even point. However, based on the options provided, the correct answer is chosen as the one that logically fits the question's requirement for a scenario of producing and selling fewer units to incur a loss.

The Figure Shows the Graphs of the Cost and Revenue