Question 158542
based on the numbers you provided, this is the solution.
cost of building radios is $5275.00 + ($18.96)*x where x is the number of radios produced.
Investment is $10,000 to produce maximum number of radios.
maximum number of radios that can be produced for $10,000 is determined by the formula below:
{{{10000 = 5275 + x*(18.96)}}}
solving for x, we get
{{{x=(10000 - 5275)/18.96)=x}}}
this becomes
{{{x=4725/(18.96)}}}
this becomes
{{{x=249.2}}} rounded to the nearest unit = 249 radios that can be produced.
to check the numbers, we take 5275 + 249*18.96 = 5275 + 4721.04 = total cost of $9996.04 which leaves $3.96 left over.
revenue from these 249 radio will be $29.99 * 249 = $7,467.51.
based on the numbers given, revenue generated will be less than the cost to produce the radios.