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

Option A: is the equation.

Explanation:

Let x represents the number of hours per month the store is open.

It is given that the the monthly rent(expense) = $1200

Also, the employee salary for each hour(expense) = $120x

Thus, the total expense C(x) is

It is also given that the income per hour(revenue) is $200x

Thus, the revenue function R(x) is

The break - even point is given by

Total expense = Revenue

Thus, is the equation.

Hence, Option A is the correct answer.

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