The cost for Andrea to produce several units of a certain item is $336 plus $12 per unit. She sells this item for $28 per unit.

How many units of the item must she produce and sell so that the amount of money she earns in sales equals the amount of money she spends in production costs? How much money would that be?

Question

Mathematics

Eden Evans

16 December, 12:48

The cost for Andrea to produce several units of a certain item is $336 plus $12 per unit. She sells this item for $28 per unit.

How many units of the item must she produce and sell so that the amount of money she earns in sales equals the amount of money she spends in production costs? How much money would that be?

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Answers (1)

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Jack Sawyer · Answer 1

Profit will be achieved when the money earned is greater than the money spent so,

336 + (n*12) = n*28 any subsequent units sold would result in profit

336 = 28n - 12n

336 = 16n

=> n = 336/16 = 21

21 units must be sold to draw even any more would result in profit