Question

The company produces a product with a variable cost of $90 per unit. With fixed costs of $150,000 and a selling price of $1,200 per item, how many units must be sold to achieve a profit of $400,000?

89

likes
447 views

Answer to a math question The company produces a product with a variable cost of $90 per unit. With fixed costs of $150,000 and a selling price of $1,200 per item, how many units must be sold to achieve a profit of $400,000?

Expert avatar
Timmothy
4.8
86 Answers
To find out how many units must be sold to achieve a profit of $400,000, we need to set up the profit equation.

Let's denote the number of units sold as $x$.

The total cost can be calculated by taking the sum of the fixed costs (150,000) and variable costs per unit (90) multiplied by the number of units sold ($x$):

Total cost = Fixed costs + (Variable cost per unit * Number of units sold)
= 150,000 + (90 * $x)

The total revenue can be calculated by multiplying the selling price per unit (1,200) by the number of units sold ($x$): Total revenue = Selling price per unit * Number of units sold = 1,200 * $x

The profit can be calculated by subtracting the total cost from the total revenue:

Profit = Total revenue - Total cost

Now we can set up the equation to find the number of units sold:

1,200x - (150,000 + 90x) = 400,000 To solve this equation, we can first simplify it: 1,200x - 150,000 - 90x = 400,000

Combining like terms:

1,200x - 90x - 150,000 = 400,000 1,110x - 150,000 = 400,000

Next, we can isolate the variable on one side:

1,110x = 400,000 + 150,000 1,110x = 550,000

Dividing both sides by $$1,110:

x = \frac{550,000}{1,110}

Simplifying:

x \approx 494.59

Therefore, approximately 494.59 units must be sold to achieve a profit of $400,000.

Answer: \boxed{494.59 \text{ units}}

Frequently asked questions (FAQs)
What is the formula to find the variance of a data set?
+
Find the average score of a class with 25 students in a math test, where 10 students scored 80, 12 scored 90, and the rest scored 100.
+
What is the equation of an ellipse centered at the origin with major axis of length 6 and minor axis of length 4?
+
New questions in Mathematics
Simplify the expression sin³(x)+cos³(x), using trigonometric functions
reduction method 2x-y=13 x+y=-1
Investing equal amounts of money into each of five business ventures Let's say you plan. 20 to choose from If there are initiatives, how many different ones among 20 initiatives? five startups can be selected?
Determine the momentum of a 20 kg body traveling at 20 m/s.
By direct proof, how can you prove that “The sum of any three consecutive even integers is always a multiple of 6”.
Let r: x - y 5 = 0. Determine a general equation of the line s parallel to the line r, which forms an isosceles triangle with area 8 with the line x = 5 and the Ox axis.
In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24
using the math and science known about the jefferson river bridge Find a truss in use and develop a load diagram. Use a load of 50 lb on each joint along the bottom of the truss for a truss that actrs as a bridge and along the top joints for a truss that acts as a roof
The ninth term of a given geometric progression, with reason q , is 1792, and its fourth term is 56. Thus, calculate the fourth term of another geometric progression, whose ratio is q +1 and whose first term is equal to the first term of the first P.G. described.
Convert 9/13 to a percent
Determine a general formula​ (or formulas) for the solution to the following equation.​ Then, determine the specific solutions​ (if any) on the interval [0,2π). cos30=0
In a 24 hours period, the average number of boats arriving at a port is 10. Assuming that boats arrive at a random rate that is the same for all subintervals of equal length (i.e. the probability of a boat arriving during a 1 hour period the same for every 1 hour period no matter what). Calculate the probability that more than 1 boat will arrive during a 1 hour period. (P(X>1) ) Give your answers to 4 decimal places and in a range between 0 and 1
Calculate the change in internal energy of a gas that receives 16000 J of heat at constant pressure (1.3 atm) expanding from 0.100 m3 to 0.200 m3. Question 1Answer to. 7050J b. 2125J c. None of the above d. 2828J and. 10295 J
A buyer purchased a North Carolina home for $475,250. The seller allowed the buyer to assume his first small mortgage with a loan balance of $110,000. How much is the excise tax paid in the transaction? $951 $729.50 $950.50 $221 none of the above
A salesperson earns a base salary of $600 per month plus a commission of 10% of the sales she makes. You discover that on average, it takes you an hour and a half to make $100 worth of sales. How many hours will you have to work on average each month for your income to be $2000?
Consider the function f(x)=1/2(x+1)^2-3. Use the preceding/following interval method to estimate the instantaneous rate of change at 𝑥 = 1.
2+2020202
a coffee shop has 9 types of creamer and 11 types of sweetener. In how any ways can a person make their coffee?
Solve the system of equations by the addition method. 0.01x-0.08y=-0.1 0.2x+0.6y=0.2
Question 3 A square has a perimeter given by the algebraic expression 24x – 16. Write the algebraic expression that represents one of its sides.