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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A factory can sell all the books it produces at the selling price of $60 each. It costs the factory
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Solution:Mikrislac wrote: ↑Tue Aug 18, 2020 11:18 pmA 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
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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