Question
For a radio manufacturer, the cost of labor and materials per radio is $20 and fixed costs are $2,000 per day. If each radio sells for $30, how many radios must be produced and sold each day to earn zero profit?
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Answer to a math question For a radio manufacturer, the cost of labor and materials per radio is $20 and fixed costs are $2,000 per day. If each radio sells for $30, how many radios must be produced and sold each day to earn zero profit?
Velda
4.5110 Answers
1. Define the variables and write the equations for total cost and revenue:
\text{Total cost} = 20x + 2000
\text{Revenue} = 30x
2. Set the profit equation to zero and solve for \( x \):
30x - (20x + 2000) = 0
30x - 20x - 2000 = 0
10x - 2000 = 0
10x = 2000
x = 200
3. Therefore, the number of radios needed to earn zero profit is:
200
2. Set the profit equation to zero and solve for \( x \):
3. Therefore, the number of radios needed to earn zero profit is:
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