SOLUTION: an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 789354: an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.
-----------
Profit = Revenue - TotalCost
Total Cost = Manufacturing Expense + Overhead
-----
5000 = 6*2000 - 3*2000 - overhead
5000 = 12000 - 6000 - overhead
5000 = 6000 - overhead
overhead = $1000
--------------
Note: Not sure what you meant by "cost equation".
I assumed you meant cost = manufacturing expense + overhead
============
Cheers
Stan H.