SOLUTION: The cost to develop a DVD is $300,000. DVDs can be made for $0.27 each. Two hundred DVDs are given away as samples. How many DVDs must be produced for the average cost to be under
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-> SOLUTION: The cost to develop a DVD is $300,000. DVDs can be made for $0.27 each. Two hundred DVDs are given away as samples. How many DVDs must be produced for the average cost to be under
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Question 697046: The cost to develop a DVD is $300,000. DVDs can be made for $0.27 each. Two hundred DVDs are given away as samples. How many DVDs must be produced for the average cost to be under $12? Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! Let = the cost to produce DVD's
which do not include the samples
The $300,000 is a fixed cost, and the
that are given away is a fixed cost. This fixed cost
is the production cost of
the samples
The average cost is required to be
Substituting,
25,577 DVDs must be produced for the
average cost to be under $12
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check answer:
OK
Hope I got it!
