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.
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Profit = Revenue - TotalCost
Total Cost = Manufacturing Expense + Overhead
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5000 = 6*2000 - 3*2000 - overhead
5000 = 12000 - 6000 - overhead
5000 = 6000 - overhead
overhead = $1000
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Note: Not sure what you meant by "cost equation".
I assumed you meant cost = manufacturing expense + overhead
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Cheers
Stan H.