Problema Solution
A company produces skies. Fixed costs are $2000, and the cost of producing each pair of skies is $190. The selling price is $320 (per pair). How many pairs should be sold to make a profit of $25300?
Answer provided by our tutors
fixed cost =2000
cost per pair=190
let the no. of pair be X
so the total cost inccur=2000+190X
he want a profit =25000
so X item should be sold at =2000+190X+25300
=190X+27000........................(1)
but selling price of each pair=320
for x pair=320X........................(2)
(1) and (2) are equal
320x=190X+27300
130X=27300
x=27300/130
=210 pairs.