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Difficulty:
75%
(hard)
Question Stats:
53%
(02:04)
correct 47%
(01:38)
wrong
based on 19
sessions
History
Date
Time
Result
Not Attempted Yet
A company produces a batch of widgets every week. The production cost per widget is $8, and each widget sells for $12. If the company produces x widgets in a week, it must also pay a fixed weekly overhead cost of $1,500. What is the minimum number of widgets the company must sell in a week to make a profit?
A) 250 B) 375 C) 400 D) 500 E) 600
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A company produces a batch of widgets every week. The production cost per widget is $8, and each widget sells for $12. If the company produces x widgets in a week, it must also pay a fixed weekly overhead cost of $1,500. What is the minimum number of widgets the company must sell in a week to make a profit?
A) 250 B) 375 C) 400 D) 500 E) 600
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Cost per week = 8x + 1500
Revenue per week = 12x
Profit = Revenue - Cost
To make profit, revenue > cost => 12x > 8x + 1500
= 4x > 1500
= x > 375
So, the minimum number of widgets the company must sell in a week is 376
However, that is not an option in the answer choices, the best option would be C. 400, but it still won't be a correct answer since the question asks minimum number.
This Question is Locked Due to Poor Quality
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The question you've reached has been archived due to not meeting our community quality standards. No more replies are possible here.
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Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.