SOLUTION: The CALC Company makes basic scientific calculators. Each calsulator costs $2.75 to produce. The fixed costs of production are $11,500 per month. These calculators sell for $10.25

Question 133151This question is from textbook Fundamentals of Algebric Modeling
: The CALC Company makes basic scientific calculators. Each calsulator costs $2.75 to produce. The fixed costs of production are $11,500 per month. These calculators sell for $10.25 each. If the company produces and sells 450,000 calculators in February, find the profit or loss for the month of February. This question is from textbook Fundamentals of Algebric Modeling

Found 2 solutions by vleith, checkley71:
Answer by vleith(2983) (Show Source): You can put this solution on YOUR website!
Given: fixed costs 11500/month and per unit cost of 2.75. Sales price of 10.25. sales in units is 450,000

Profit = 3,363,500 in Feb.
Man, we are in the wrong job :)

Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
11,500+2.75*450,000
11,500+1,237,500=1,249,000 cost of production.
10.25*450,000=4,612,500 selling price.
4,612,500-1,249,000=$3,363,500 is the profit for manufacturing & selling 450,000 calculators.

RELATED QUESTIONS
The CALC Company makes basic scientific calculators. Each calsulator costs $2.75 to... (answered by checkley71)
The CALC Company makes basic scientific calculators. Each calculator costs $2.25 to... (answered by stanbon)
The CALC Company makes basic scientific calculators. Each calculator costs $2.75 to... (answered by checkley71)
Each calculator costs 2.75 to make. Fixed cost of production are 11,500 per month. These... (answered by richwmiller)
A small publishing company is planning to publish a new book. The production costs will... (answered by fcabanski)
A small publishing company is planning to publish a new book. The production costs will... (answered by lynnlo)
A small publishing company is planning to publish a new book. The production costs will... (answered by ankor@dixie-net.com)
A small publishing company is planning to publish a new book. The production costs will... (answered by Zucchini,Theo)
A small publishing company is planning to publish a new book. The production costs will... (answered by josgarithmetic,TeachMath,ikleyn)