document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=176745>Question 176745</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Can someone please, please help me with this problem:\r<BR>\n" );
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document.write( "Zoro, Inc produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $30,000. The product sells for $10.00 a unit and the company desires to earn a $20,000 profit. What is the volume of sales in unit required to achieve the target profit?\r<BR>\n" );
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document.write( "a. 5,000<BR>\n" );
document.write( "b. 7,500<BR>\n" );
document.write( "c. 8,333<BR>\n" );
document.write( "d. 12,500 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #132309 by </B><A HREF=/tutors/aboutme.mpl?userid=gonzo><B>gonzo(654)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=gonzo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=132309\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> let p = profit<BR>\n" );
document.write( "let r = revenue per unit<BR>\n" );
document.write( "let f = fixed cost<BR>\n" );
document.write( "let v = variable cost per unit<BR>\n" );
document.write( "let x = number of units sold<BR>\n" );
document.write( "formula for profit is:<BR>\n" );
document.write( "p = r - f - v<BR>\n" );
document.write( "p = $20,000<BR>\n" );
document.write( "r = x * $10.00<BR>\n" );
document.write( "f = $30,000<BR>\n" );
document.write( "v = x * $6.00<BR>\n" );
document.write( "formula becomes:<BR>\n" );
document.write( "$20,000 = (x*$10.00) - $30,000 - (x*$6.00)<BR>\n" );
document.write( "add $30,000 to both sides to get:<BR>\n" );
document.write( "$50,000 = x*$10.00 - x*$6.00<BR>\n" );
document.write( "factor out the x to get:<BR>\n" );
document.write( "$50,000 = x * ($10.00 - $6.00)<BR>\n" );
document.write( "combine like terms to get:<BR>\n" );
document.write( "$50,000 = x * ($4.00)<BR>\n" );
document.write( "divide both sides by $4.00 to get:<BR>\n" );
document.write( "$50,000 / $4.00 = x<BR>\n" );
document.write( "simplify to get:<BR>\n" );
document.write( "12,500 = x<BR>\n" );
document.write( "looks like the answer is going to be 12,500 units.<BR>\n" );
document.write( "substitute in original eqution to see if this holds up.<BR>\n" );
document.write( "p = $20,000<BR>\n" );
document.write( "r = 12,500 * $10.00 = $125,000 <BR>\n" );
document.write( "f = $30,000<BR>\n" );
document.write( "v = 12,500 * $6.00 = $75,000<BR>\n" );
document.write( "formula is:<BR>\n" );
document.write( "p = r - f - v<BR>\n" );
document.write( "which becomes:<BR>\n" );
document.write( "$20,000 = $125,000 - $30,000 - $75,000 = $125,000 - $105,000 = $20,000<BR>\n" );
document.write( "equation is true.<BR>\n" );
document.write( "answer is:<BR>\n" );
document.write( "volume of sales in units required to achieve the target profit is 12,500 units. </SPAN>\n" );
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