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14 Jun 2016, 02:51
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C
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Difficulty:
5%
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Question Stats:
89% (01:10) correct
11%
(01:24)
wrong
based on 55
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A factory has a fixed cost of $45,000 a month, and a cost of $2.5 for every item produced. If the selling price of a single item is $5, what is the number of items must be sold monthly for the factory to cover its cost exactly?
A. 9,000
B. 14,000
C. 18,000
D. 22,500
E. 27,000
A. 9,000
B. 14,000
C. 18,000
D. 22,500
E. 27,000
14 Jun 2016, 03:01
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selling price - Cost price = 2.5 so per unit profit =2.5
cost to recover =45000
no of items required = 45000/2.5 = 18000 Ans C
Hit kudos if it helped
cost to recover =45000
no of items required = 45000/2.5 = 18000 Ans C
Hit kudos if it helped
14 Jun 2016, 03:52
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Total Cost = Total revenue earned (to cover the costs exactly)
Let x be no of items.
45000* 2.5 x = 5x ;
18000 = x
Let x be no of items.
45000* 2.5 x = 5x ;
18000 = x
