Question

Asked Oct 17, 2019

Step 1

(a) Let the number of pounds of candies be *x*.

The total production cost for *x* pounds of candy is = 300 + (1)(*x*), that is *C* = 300 + *x*.

Step 2

(b) Here, since each pound of candy is sold for $2, the total revenue from selling *x* pounds of candy is *R* = 2*x*.

Step 3

(c) The break-even point is computed by equating the above two equations.

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