By date C(x) = 12.5x + 6400, S(x) = 25x
Break even point ⇒ C(x) = S(x)
⇒ 12.5x + 6400 = 25x ⇒ 6400 = 12.5x
⇒ x = 6400/12.5 = 512
Selling price is reduced by 2.5 unit
S(x) = (25 – 2.5) = (22.5)x
Break even point ⇒ C(x) = S(x)
12.5x + 640 = 22.5x
⇒ 6400 = 10x = x = 6400/10 = 640