Question

Last year, a certain company began manufacturing product X and sold every unit of product X that it produced. Last year the company's total expenses for manufacturing product X were equal to $100,000 plus 5 percent of the company's total revenue from all units of product X sold. If the company made a profit on product X last year, did the company sell more than 21,000 units of product X last year?

Answer 1

Insufficient information to answer this question.

However, if product X is priced $5,013 per, then company made a profit on product X last year if they had sold more than 21,000 units of product X last year

Step-by-step explanation:

profit = revenues - total expenses for manufacturing product X

= revenues - (100,000 + 0.05 revenues)

= 0.95 revenues - 100,000

profit > 0 ⇔ 0.95 revenues -100,000 > 0 ⇔ 0.95 (price x units)> 100,000

⇔ price x unit > 105,263

if price is from $5,013; then the company made profit if sell more than 21,000 units,