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Joined: 08 Nov 2008
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A small business invests $9,900 in equipment to produce a
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Updated on: 21 Jul 2015, 02:20
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A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment? A. 12,000 B. 14,500 C. 15,230 D. 18,000 E. 20,000
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Originally posted by petercao on 08 Nov 2008, 21:16.
Last edited by Bunuel on 21 Jul 2015, 02:20, edited 1 time in total.
Renamed the topic, edited the question, added the OA and moved to PS forum.




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Re: A small business invests $9,900 in equipment to produce a
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20 Jul 2015, 13:32
A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment? A. 12,000 B. 14,500 C. 15,230 D. 18,000 E. 20,000 If we ask the question a different way, that answer is much easier to see. The company makes $0.55 ($1.20 less the $0.65) on each product. so how many of these products will need to be made to cover the initial $9,900 equipment cost. 9,900/0.55 will give us the answer. 9,900/0.55 is 18,000 ==> the correct answer is D.
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Re: A small business invests $9,900 in equipment to produce a
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08 Nov 2008, 21:34
petercao wrote: A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?
A. 12,000 B. 14,500 C. 15,230 D. 18,000 E. 20,000 the total expense of production is 9,900+0.65x and the revenue is 1.20x so x=18,000



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Re: A small business invests $9,900 in equipment to produce a
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08 Nov 2008, 21:35
x is the number of units
Total product cost = total expense = 0.65x Total product sale prices: 1.2x
Revenue receive = 1.2x  9,900
1.2x  9,900 = 0.65 <=> x = 18,000 (D)



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Re: A small business invests $9,900 in equipment to produce a
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08 May 2019, 08:24
petercao wrote: A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?
A. 12,000 B. 14,500 C. 15,230 D. 18,000 E. 20,000 Let x = the number of units produced AND sold TOTAL COSTIf each unit of the product costs $0.65 to produce, then it costs 0.65x dollars to produce x units We must also add the $9,900 investment in equipment So, TOTAL COST = 0.65x + 9900TOTAL REVENUEIf each unit sells for $1.20 to produce, then selling x units results in TOTAL SALES of 1.2x dollars We want: TOTAL REVENUE = TOTAL COSTIn other words: 1.2x = 0.65x + 9900Subtract 0.65x from both sides: 0.55x = 9900 Solve: x = 9900/0.55 PRO TIP: We know that 9900/0.5 = 19,800 Since 0.55 is a bit bigger than 0.5, we know that 9900/0.55 = a little bit LESS THAN 19,800 Answer: D Cheers, Brent
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Re: A small business invests $9,900 in equipment to produce a
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10 May 2019, 17:34
petercao wrote: A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?
A. 12,000 B. 14,500 C. 15,230 D. 18,000 E. 20,000 We can let n = the number of items produced and create the equation: 1.2n = 9,900 + 0.65n 0.55n = 9,900 n = 18,000 Answer: D
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Re: A small business invests $9,900 in equipment to produce a
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11 May 2019, 04:54
petercao wrote: A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?
A. 12,000 B. 14,500 C. 15,230 D. 18,000 E. 20,000 Proft per unit =(1.20.65)=0.55 9900/0.55=18000 more units of product must be sold to cover the production cost. Answer is D Posted from my mobile device




Re: A small business invests $9,900 in equipment to produce a
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