Question

A clock manufacturer’s fixed costs per month are $5000. The unit cost for each clock is $15. Find the number of clocks made during a month in which the total cost was $65,000. Use the formula T = UN + F, where T is the total cost, U is the cost per unit, N is the number of units made, and F is the fixed costs.

Answer 1

4000

Explanation:

THe formula given is:

T = UN + F

Where T is the total cost

U is the cost per unit

N is the number of units manufactured

F is the fixed cost

Also, in the problem, it is given,

F = 5000

U = 15

T = 65000

We need to find N, the number of clocks, so lets rearrange the formula so that we have N = SOMETHING:

`T = UN + F\\UN=T-F\\N=(T-F)/(U)`

Now we substitute the given information into this to find N:

`N=(T-F)/(U)\\N=(65000-5000)/(15)\\N=(60000)/(15)\\N=4000`

So,

number of clocks made = 4000