SOLUTION: The fixed cost of developing a new drug is $3 billion. The unit cost of producing a single dose of the drug is $1, and patients are charged $11 per dose. In order to make a $1 bill

Algebra ->  Finance -> SOLUTION: The fixed cost of developing a new drug is $3 billion. The unit cost of producing a single dose of the drug is $1, and patients are charged $11 per dose. In order to make a $1 bill      Log On


   

Question 981517: The fixed cost of developing a new drug is $3 billion. The unit cost of producing a single dose of the drug is $1, and patients are charged $11 per dose. In order to make a $1 billion profit on the drug, how many doses must be sold?
300,000,000
350,000,000
400,000,000
500,000,000
None of the above
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
The cost of the drug is,
C=3000000000%2B%281%29X
where X is the number of doses.
The revenue from the drug is,
R=11X
So,
P=R-C
1000000000=3000000000%2BX-11X
-2000000000=-10X
X=200000000
200 million doses
None of the above.