**Break-even Analysis for Trudeau’s Body Shop**Trudeau’s Body Shop incurs total costs given by the formula:\[ TC = 2,400 + 100Q \]Where:- $ TC $ is the total cost,- $ Q $ is the number of paint jobs.The price charged for a paint job is $120. To find the break-even level of output, determine the number of paint jobs ($ Q $) where total revenue equals total costs.**Options for the Break-even Output:**- 20 paint jobs- 90 paint jobs- 60 paint jobs- 120 paint jobs- 40 paint jobs**Solution Approach:**To find the break-even point, set total revenue equal to total costs:\[ 120Q = 2,400 + 100Q \]Solve for $ Q $ to find the break-even level of output.

Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Trudeau's Body Shop incurs total costs given by TC = 2,400 + 100Q. If the price it charges for a paint job is $120, what is its break-even level of output? 20 paint jobs 90 paint jobs 60 paint jobs 120 paint jobs 40 paint jobs

Trudeau's Body Shop incurs total costs given by TC = 2,400 + 100Q. If the price it charges for a paint job is $120, what is its break-even level of output? 20 paint jobs 90 paint jobs 60 paint jobs 120 paint jobs 40 paint jobs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**Break-even Analysis for Trudeau’s Body Shop**

Trudeau’s Body Shop incurs total costs given by the formula:

\[ TC = 2,400 + 100Q \]

Where:
- $ TC $ is the total cost,
- $ Q $ is the number of paint jobs.

The price charged for a paint job is $120. To find the break-even level of output, determine the number of paint jobs ($ Q $) where total revenue equals total costs.

**Options for the Break-even Output:**

- 20 paint jobs
- 90 paint jobs
- 60 paint jobs
- 120 paint jobs
- 40 paint jobs

**Solution Approach:**

To find the break-even point, set total revenue equal to total costs:
\[ 120Q = 2,400 + 100Q \]

Solve for $ Q $ to find the break-even level of output.

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