A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?

A. 12,000

B. 14,500

C. 15,230

D. 18,000

E. 20,000

## equation

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### GMAT/MBA Expert

- Brent@GMATPrepNow
- GMAT Instructor
**Posts:**16207**Joined:**Mon Dec 08, 2008 6:26 pm**Location:**Vancouver, BC**Thanked**: 5254 times**Followed by:**1268 members**GMAT Score:**770

Let's begin by writing a "word equation"klaud wrote:A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold for $1.20. How many units of the product must be sold before the revenue received equals the total expense of production, including the initial investment in equipment?

A. 12,000

B. 14,500

C. 15,230

D. 18,000

E. 20,000

We want: revenue received = total expense of production

**Let x = the number of units produced and sold.**

Revenue received = 1.2x

Total expenses = initial investment + $0.65 per unit

= 9900 + 0.65x

So, we get the equation: 1.2x = 9900 + 0.65x

When we solve this for x, we get x=18000

So the answer is D

Cheers,

Brent

### GMAT/MBA Expert

- Brent@GMATPrepNow
- GMAT Instructor
**Posts:**16207**Joined:**Mon Dec 08, 2008 6:26 pm**Location:**Vancouver, BC**Thanked**: 5254 times**Followed by:**1268 members**GMAT Score:**770

I think our solutions are identical, except I may have explained a few more piecesklaud wrote:I solved this problem in this way:

1,20-0,65= 0,55

9,900:0,55=18,000

Cheers,

Brent