SOLUTION: A company manufactures and sells blank CDs.The weekly fixture cost is $15,000 and it's cost $0.30 to produce each CD.The selling price is $1.50 per CD.How many CDs must be produced

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: A company manufactures and sells blank CDs.The weekly fixture cost is $15,000 and it's cost $0.30 to produce each CD.The selling price is $1.50 per CD.How many CDs must be produced      Log On

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Question 23229: A company manufactures and sells blank CDs.The weekly fixture cost is $15,000 and it's cost $0.30 to produce each CD.The selling price is $1.50 per CD.How many CDs must be produced and sold each week for the company to have a profit gain?
It's a multiple choice question and my choices are:
(a)More than 12500 Cds must be produced.
(b)12000 CDs must be produced.
(c)Less than 10500 CDs must be produced.
(d)1500 CDs must be produced.

Answer by rapaljer(4671) About Me  (Show Source):
You can put this solution on YOUR website!
Total costs for producing x CDs= .30x + 15000
Total selling price = 1.50x

Profit = selling price - cost
P = 1.50x - (.30x+15000) > 0
1.50x -.30x - 15000 >0
1.20x -15000 >0
1.20x > 15000

Divide both sides by 1.20:
%281.20x%29%2F1.20+%3E+15000%2F1.20
x%3E12500 CDs sold per week to make a profit.

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