Problema Solution
A small software company invests $16,000 to produce a software package that will sell for $55.95. Each unit costs $9.45 to produce.
a) how many units must the company sell to break even?
b) How many units must the company sell to make a profit of $100,000?
Answer provided by our tutors
let 'x' represent the number of units sold
a) how many units must the company sell to break even?
16000 + 9.45x = 55.95x
by solving we find:
x = 344 units
the company must sell 344 units to break even.
b) How many units must the company sell to make a profit of $100,000?
55.95x - (16000 + 9.45x) = 100000
by solving we find:
x = 2,495 units
click here to see the step by step solution of the equation:
the company needs to sell 2,495 units to make a profit of $100,000.