Question 971002: A company manufactures and sells blank audio cassette tapes. The weekly fixed cost is $8,100 and it costs $0.30 to produce each tape. The selling price is $3.00 per tape. How many tapes must be produced and sold each week for the company to generate a profit?
a. more than 1,000 but less than 2,000
b. more than 2,000 less than 3,000
c. more than 3,000
d. less than 1,000
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! let the number of tapes = x
Cost is 8100 + (0.30) x, units in dollars.
Revenue is 3x
8100 +0.30 x > 3x (profit is what is requested, not break even)
8100 >2.70 x, subtracting 0.30 x from both sides
divide by 2.70
x > 3000
At 3000 tapes, the cost is 8100 (0.3)*3000=$9000
3000 tapes at $3/tape =$9000
The answer is 3001. or >3000
Both work
It is C.
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