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
97 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)
Math question: Find the square root of 64.
+
What is the trigonometric value (sine, cosine, or tangent) of angle π/6 in the unit circle?
+
What is the x-component of the unit vector parallel to vector V(3, -4) in R^2?
+
New questions in Mathematics
a runner wants to build endurance by running 9 mph for 20 min. How far will the runner travel in that time period?
Add. 7/w²+18w+81 + 1/w²-81
The patient is prescribed a course of 30 tablets. The tablets are prescribed “1 tablet twice a day”. How many days does a course of medication last?
5 . {2/5 + [ (8/-9) - (1/-7) + (-2/5) ] ÷ (2/-5)} . 8/15
-6(3x-4)=-6
Find the equation of the normal to the curve y=x²+4x-3 at point(1,2)
P is a polynomial defined by P(x) = 4x^3 - 11×^2 - 6x + 9. Two factors are (x - 3) and (x + 1). Rewrite the expression for P as the product of linear factors.
3x+2/2x-1 + 3+x/2x-1 - 3x-2/2x-1
Log(45)
3. A rock is dropped from a height of 16 ft. It is determined that its height (in feet) above ground t seconds later (for 0≤t≤3) is given by s(t)=-2t2 + 16. Find the average velocity of the rock over [0.2,0.21] time interval.
Using the bank and exact method, calculate the interest on capital 10000 at 12% annual nominal interest rate for the period from 15.3. 2016 until 10/10/2016
Jasminder has made 55% of the recipes in a particular cookbook. If there are 9 recipes that he has never made, how many recipes does the cookbook contain?
Write the detailed definition of a supply chain/logistics related maximization problem with 8 variables and 6 constraints. Each constraint should have at least 6 variables. Each constraint should have At least 5 variables will have a value greater than zero in the resulting solution. Variables may have decimal values. Type of equations is less than equal. Numbers and types of variables and constraints are important and strict. Model the problem and verify that is feasible, bounded and have at least 5 variables are nonzero.
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
You buy a $475,000 house and put 15% down. If you take a 20 year amortization and the rate is 2.34%, what would the monthly payment be?
a) 6x − 5 > x + 20
Write the inequality in the form of a<x<b. |x| < c^2
2+2020202
Select a variable and collect at least 50 data values. For example, you may ask the students in the college how many hours they study per week or how old they are, etc. a. Explain what your target population was. b. State how the sample was selected. c. Summarise the data by using a frequency table. d. Calculate all the descriptive measures for the data and describe the data set using the measures. e. Present the data in an appropriate way. f. Write a paragraph summarizing the data.
In a school playground When going out for recess, 80 men and 75 women coexist, the Patio measures 10 meters For 40 meters (what will be the population density in the break