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A factory can sell all the books it produces at the selling price of $60 each. It costs the factory

Expert replies
by Mikrislac » Tue Aug 18, 2020 11:18 pm

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Answers

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E

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Difficulty

A factory can sell all the books it produces at the selling price of $60 each. It costs the factory $40 in materials and labor to produce each item and an additional amount of overhead expenses of $3000 per week to operate the factory. What is the number of books that the factory must produce and sell so that it can make a profit of at least $1000 per week?

(A) 200

(B) 250

(C) 300

(D) 350

(E) 400
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Source: — Problem Solving |

Mikrislac wrote:
Tue Aug 18, 2020 11:18 pm
A factory can sell all the books it produces at the selling price of $60 each. It costs the factory $40 in materials and labor to produce each item and an additional amount of overhead expenses of $3000 per week to operate the factory. What is the number of books that the factory must produce and sell so that it can make a profit of at least $1000 per week?

(A) 200

(B) 250

(C) 300

(D) 350

(E) 400
Solution:

Since Revenue - Cost = Profit and we want Profit ≥ 1000, we can create the inequality

Revenue - Cost ≥ 1000

60x - (40x + 3000) ≥ 1000

20x - 3000 ≥ 1000

20x ≥ 4000

x ≥ 200

Answer: A

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