Question

You sell widgets for $8.59. you pay $860 for rent each month regardless if you sell any widgets. each widget costs $3.22 to make. how many widgets do you need to sell in a month to make a profit of $1600?

A. 824 cm
B. 1600 cm
C. 2000 cm
D. 3200 cm

Answer 1

To make a profit of $1600, you need to sell approximately 457 widgets in a month.

Step-by-step explanation:

To calculate the number of widgets needed to be sold in a month to make a profit of $1600, we need to consider the costs and revenues associated with selling widgets.

The fixed costs of the business are $860 for rent each month, regardless of the number of widgets sold. The variable cost per widget is $3.22.

Let's assume x is the number of widgets sold.

To calculate the profit, we need to subtract the total costs from the total revenues:

Profit = (Revenue per widget * x) - (Fixed costs + Variable costs per widget * x)

Since we want the profit to be $1600, we can set up the equation:

1600 = (8.59 * x) - (860 + 3.22 * x)

Simplifying the equation:

1600 = 5.37x - 860

Adding 860 to both sides:

2460 = 5.37x

Dividing both sides by 5.37:

x ≈ 457

Therefore, you would need to sell approximately 457 widgets in a month to make a profit of $1600.