Question

A camera manufacturer spends $2,000 each day for overhead expenses plus $9 per camera for labor and materials. The cameras sell for $17 each.

a. How many cameras must the company sell in one day to equal its daily costs?
b. If the manufacturer can increase production by 50 cameras per day, what would their daily profit be?


answer choices include-

a 250; $400
b118; $656
c250; $850
d170; $240

Answer 1

if you do the calculations and have in mind the data given then we may say that 1) The company must sell 250 cameras in one day and
2) If the manufacturer increases the production by 50 then the profut would be 400.
Your option is the first one, option A

Answer 2

c250; $850

Explanation:

Given:

A camera manufacturer spends $2,000 each day for overhead expenses plus $9 per camera for labor and materials.

The cameras sell for $17 each.

Solution :

Let no. of cameras sold per day =x

Since he spend $2000 each day and $9 per camera each day

Cost of labor and materials of 1 camera = $9

Cost of labor and materials of x cameras = 9x

so, his total cost for one day = 2000+9x

now selling price of each camera is $17

Selling price of x cameras = $17x

Now we are asked How many cameras must the company sell in one day to equal its daily costs?

⇒17x= 2000+9x

⇒2000=8x

⇒
`(2000)/(8) =x`

⇒
`250 =x`

Thus, 250 cameras must be sold in one day to equal its daily costs

Now , If the manufacturer can increase production by 50 cameras per day.

So, selling price of 50 cameras = 50*17 =$850

So, $850 would be their daily profit

Hence If the manufacturer can increase production by 50 cameras per day $850 would be their daily profit

Thus Option C is correct .