SOLUTION: A toy company spends $1500 each day for factory expenses plus $8 fer teddy bear. How many bears must the company sell in one day to equal its daily cost?
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Question 243367: A toy company spends $1500 each day for factory expenses plus $8 fer teddy bear. How many bears must the company sell in one day to equal its daily cost? Answer by oberobic(2304) (Show Source):
You can put this solution on YOUR website! What is the sales price of the teddy bears? From you setup it seems that $8 is the marginal cost of each bear. The fixed costs for the factory seem to be $1500. So we can use a standard form to determine the profit.
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Total Profit = Total Revenue - Total Costs
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Total Revenue = Sales Price per Unit * Number of Units Sold
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Total Costs = Fixed Costs + (Marginal Costs per Unit * Number of Units Produced)
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