Question

If the expected selling price for a new I phone is $500/unit,

fixed costs are $10,000,000, and the cost of production is
$300/unit, how many units does Apple need to sell in one month to
earn a profit of $10,000,000?

Answer 1

To earn a profit of $10,000,000, Apple needs to sell 100,000 units of the new iPhone in one month.

Step-by-step explanation:

To find the number of units Apple needs to sell in one month to earn a profit of $10,000,000, we can use the formula:

Number of units sold = (Fixed costs + Desired profit) / (Selling price - Cost of production)

Substituting the given values, we get: Number of units sold = ($10,000,000 + $10,000,000) / ($500 - $300) = $20,000,000 / $200 = 100,000 units.

Therefore, Apple needs to sell 100,000 units in one month to earn a profit of $10,000,000.