Question 986449: Nelsons manufactures baseballs at a cost of 7.50 each with fixed costs of 10,000. if one baseball sells for 12 dollars, how many must they sell to make a profit of 12,000?
I know the answer is 4889 baseballs, but i got 2,933.
10,000 + 12,000= 2,200/7.50= 2,933.
Where did I go wrong?
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! C=7.5x+10,000
R=12x+12,000
12x=7.5x+22000, because they are equal when they breakeven, but there must be profit of 12,000
4.5x=22,000
x=4888.99 or 4889.
The revenue must be 22,000, but you can't divide that by 7.5
;
Set up the Cost function 10,000 fixed +7.5 x variable
Set up the Revenue function 12x.
At the breakeven point, the two are equal. When there is profit, that goes into the revenue function, and one solves accordingly.
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