Question

A software company incurs a cost of $50 per license sold plus $5,000 in fixed costs. How many licenses should you sell to minimize total costs?

190

likes
951 views

Answer to a math question A software company incurs a cost of $50 per license sold plus $5,000 in fixed costs. How many licenses should you sell to minimize total costs?

Expert avatar
Timmothy
4.8
98 Answers
To minimize the total costs, you should find the number of licenses you need to sell to cover the fixed costs and the variable costs per license. In this case, the cost function can be represented as follows: Total Cost (C) = Fixed Costs + (Variable Cost per License) * (Number of Licenses Sold) Fixed Costs = $5,000 Variable Cost per License = $50 Let's denote the number of licenses to be sold as "x." We want to minimize the total cost, so we need to find the value of "x" that minimizes the total cost. The total cost function is: C(x) = $5,000 + $50x Now, to minimize the total cost, set up a cost equation where the total cost equals the revenue, which is the product of the number of licenses sold and the selling price (assuming that you're selling each license for a certain price "p"): C(x) = p * x Now, you need to find the price "p" that covers both the fixed and variable costs. Substituting the values: $5,000 + $50x = p * x Now, you want to isolate "x" to find the number of licenses to sell. Start by subtracting $5,000 from both sides: $50x = p * x - $5,000 Now, factor out "x" from the right side: $50x = x(p - $5,000) Now, divide both sides by "x": $50 = p - $5,000 Add $5,000 to both sides: $5,050 = p So, you should sell each license for at least $5,050 to cover both the fixed and variable costs. The number of licenses you need to sell to minimize the total costs is not influenced by the selling price; it remains "x."

Frequently asked questions (FAQs)
What is the value of f(x) if f(x) = 5, for any value of x?
+
Math question: Find the derivative of f(x)=3x^2 - 4x + 7 using first principles.
+
What is the measure of the third angle in a triangle with angle measures of 30Β° and 60Β°?
+
New questions in Mathematics
Find 2 numbers that the sum of 1/3 of the first plus 1/5 of the second will be equal to 13 and that if you multiply the first by 5 and the second by 7 you get 247 as the sum of the two products with replacement solution
8x-(5-x)
3(4Γ—-1)-2(Γ—+3)=7(Γ—-1)+2
5 people can complete a task in 72 hours. How many people are needed to complete the task in 60 hours.
Solve the math problem 400 students are asked if they live in an apartment and have a pet: Apartment: 120 Both: 30 Pet: 90 The probability that a randomly selected student not living in an apartment has a pet is
What is the r.p.m. required to drill a 13/16" hole in mild steel if the cutting speed is 100 feet per minute?
Find the equation of the line perpendicular to βˆ’5π‘₯βˆ’3𝑦+5=0 passing through the point (0,βˆ’2)
The durability of a tire of a certain brand is a Normal random variable with an average of 64,000 km and a standard deviation of 9,000 km. Assuming independence between tires, what is the probability that the 4 tires on a car will last more than 58,000 km?
Log5 625
TEST 123123+1236ttttt
(2m+3)(4m+3)=0
In a company dedicated to packaging beer in 750 mL containers, a normal distribution is handled in its packaging process, which registers an average of 745 mL and a standard deviation of 8 mL. Determine: a) The probability that a randomly selected container exceeds 765 mL of beer b) The probability that the beer content of a randomly selected container is between 735 and 755 mL.
The population of Pittsburgh, Pennsylvania, fell from 520,117 in 1970 to 305,704 in 2010. Write an exponential function P(t) modeling the population t years after 1970. Round the growth factor to the nearest tem thousandth.
Quadratic equation 2X = 15/X + 7
On+January+10+2023+the+CONSTRUCTORA+DEL+ORIENTE+SAC+company+acquires+land+to+develop+a+real estate+project%2C+which+prev%C3% A9+enable+50+lots+for+commercial+use+valued+in+S%2F+50%2C000.00+each+one%2C+the+company+has+as+a+business+model+generate+ cash+flow+through%C3%A9s+of+the+rental%2C+so+47%2C+of+the+50+enabled+lots+are+planned to lease+47%2C+and+ the+rest+will be%C3%A1n+used+by+the+company+for+management%C3%B3n+and+land+control
17. A loan for $104259 is taken out for 10 years with an annual interest rate of 9.4%, compounded quarterly. What quarterly payment is required to pay the loan off in 10 years? Enter to the nearest cent (two decimals). Do not use $ signs or commas in the answer.
When taking a test with m closed answers, a student knows the correct answer with probability p, otherwise he chooses one of the possible answers at random. What is the probability that the student knows the correct answer given that he answered the question correctly.
xΒ²-7x+12=0
a coffee shop has 9 types of creamer and 11 types of sweetener. In how any ways can a person make their coffee?
Convert (324)𝑓𝑖𝑣𝑒 into base-ten