Problema Solution
Margo has just started an online gift basket service. She estimates it will cost her $48 to
produce each basket and she also estimates that she will have monthly fixed costs equal to
$708. How many baskets will she need to produce and sell each month so that her average
cost per basket will be $60?
Answer provided by our tutors
let x = the average number of basket Margo needs to produce and sell each month
the total cost for x baskets produce in a month is:
708 + 48x
the average cost per basket will be $60
(708 + 48x)/x = 60
by solving we find
x = 59 baskets
click here to see the step by step solution of the equation
Margo needs to produce and sell 59 baskets each month.