a business owner pays $1,200 per month in rent and a total of $120 per hour in employee salary for each hour…

a business owner pays $1,200 per month in rent and a total of $120 per hour in employee salary for each hour the store is open. on average, the store brings in $200 in net sales per hour. which equations can be solved to determine the break - even point if ( c(x) ) represents the cost function, ( r(x) ) represents the revenue function, and ( x ) the number of hours per month the store is open? ( c(x)=1,200 + 120x; r(x)=200x ) ( c(x)=1,200 + 120; r(x)=200x ) ( c(x)=200x; r(x)=1,200 + 120x ) ( c(x)=200x; r(x)=1,200 + 120 )

a business owner pays $1,200 per month in rent and a total of $120 per hour in employee salary for each hour the store is open. on average, the store brings in $200 in net sales per hour. which equations can be solved to determine the break - even point if ( c(x) ) represents the cost function, ( r(x) ) represents the revenue function, and ( x ) the number of hours per month the store is open? ( c(x)=1,200 + 120x; r(x)=200x ) ( c(x)=1,200 + 120; r(x)=200x ) ( c(x)=200x; r(x)=1,200 + 120x ) ( c(x)=200x; r(x)=1,200 + 120 )

Answer

Explanation:

Step1: Analyze the cost function

The fixed cost is the rent of $1200 per month. The variable cost is $120 per hour. So using the formula (C(x)=\text{fixed cost}+\text{variable cost}\times x), we get (C(x) = 1200+120x).

Step2: Analyze the revenue function

The revenue per hour is $200. Using the formula (R(x)=\text{revenue per hour}\times x), we get (R(x)=200x).

Answer:

First option: (C(x) = 1,200 + 120x); (R(x)=200x)