SOLUTION: A company manufactures and sells blank audiocassette tapes. The weekly fixed cost is $2,250 and it costs $0.50 to produce each tape. The selling price is $2.00 per tape. How many t

Algebra ->  Equations -> SOLUTION: A company manufactures and sells blank audiocassette tapes. The weekly fixed cost is $2,250 and it costs $0.50 to produce each tape. The selling price is $2.00 per tape. How many t      Log On


   

Question 972741: A company manufactures and sells blank audiocassette tapes. The weekly fixed cost is $2,250 and it costs $0.50 to produce each tape. The selling price is $2.00 per tape. How many tapes must be produced and sold each week for the company to generate a profit?
a. more than 1000 but less than 1500
b. less than 1000
c. more than 1500
d. less than 500
Answer by macston(5194) About Me  (Show Source):
You can put this solution on YOUR website!
.
Break even point:
T=number of tapes
$2250+$0.50T=$2.00T
$2250=$1.50T
1500=T
The break even point is 1`500 tapes, so the company must produce and sell 1501 tapes to generate a profit. The correct response is C.