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A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \(\$130000\)

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by Vincen » Wed Oct 06, 2021 6:51 am

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A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling \(\$130,000\) and variable costs averaging \(\$8\) per item. If the manufacturer's selling price per item is \(\$15,\) how many items must the manufacturer produce and sell to earn an annual profit of \(\$150,000?\)

(A) 2,858
(B) 18,667
(C) 21,429
(D) 35,000
(E) 40,000

Answer: E

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