SOLUTION: You are setting up a part-time business with an initial investment of $12,000. The unit cost of the product is $11.50, and the selling price is $19.50. How many units would yield a

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Question 775720: You are setting up a part-time business with an initial investment of $12,000. The unit cost of the product is $11.50, and the selling price is $19.50. How many units would yield a profit of $1000?
Answer by psbhowmick(878) About Me  (Show Source):
You can put this solution on YOUR website!
Let the no. of units = N.

Total cost price = Initial investment + Unit cost price x No. of units = $(12000+11.5N).

Total sale price = Unit sale price x No. of units = $19.5N

Profit = Total sale price - Total cost price

1000 = 19.5N - (12000+11.5N)
1000 = 8N - 12000
8N = 13000
N = 1625

So 1625 units must be produced to earn a profit of $1000.