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A television manufacturer produces 600 units of a certain

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by BTGmoderatorDC » Mon Jun 24, 2019 9:39 pm

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Answers

A

B

C

D

E

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Difficulty—

A television manufacturer produces 600 units of a certain model each month at a cost to the manufacturer of $90 per unit and all of the produced units are sold each month. What is the minimum selling price per unit that will ensure that the monthly profit (revenue from sales minus the manufacturer's cost to produce) on the sales of these units will be at least $42,000?

A$110
B$120
C$140
D$160
E$180

OA D

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by Scott@TargetTestPrep » Mon Jul 01, 2019 4:12 pm
BTGmoderatorDC wrote:A television manufacturer produces 600 units of a certain model each month at a cost to the manufacturer of $90 per unit and all of the produced units are sold each month. What is the minimum selling price per unit that will ensure that the monthly profit (revenue from sales minus the manufacturer's cost to produce) on the sales of these units will be at least $42,000?

A$110
B$120
C$140
D$160
E$180

OA D

Source: Official Guide
We can let p = the selling price per unit and create the following equation:

600p - 600(90) ≥ 42,000

600p - 54,000 ≥ 42,000

600p ≥ 96,000

p ≥ 160

Since p ≥ 160, we see that the minimum selling price must be $160.

Answer: D

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