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Manufacturer

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Manager
Joined: 26 Feb 2011
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Manufacturer [#permalink]  01 Mar 2011, 09:16
A certain manufacturer produces items for which the production costs consist of annual fixed costs totalling
\$130 000 and variable costs averaging \$8 per item. If the manufaturer`s selling price per item is \$15, how many items must the manufacturer produce and sell to earn an annual profit of \$150 000?
A/ 2858
B/ 18667
C/ 21429
D/ 35000
E/ 40000
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Re: Manufacturer [#permalink]  01 Mar 2011, 09:26
Let the items manufactured or sold be "x"

130000+8x = 15x-150000
7x = 280000
x = 40000

Ans: "E"
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Re: Manufacturer   [#permalink] 01 Mar 2011, 09:26
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