Question

a company makes wireless routers. their profit from each sale is $51.5. every router that is returned as faulty results in a loss of $4.9. these routers can't be resold and therefore are scrapped. if 2% are faulty, what is the profit(or loss) the company can expect to make from selling 186.0 units?. keep number number of routers and number of faulty routers and final answer to 2 decimal places.

Answer 1

The company can expect to make a profit of $9380.43 from selling 186.0 units, considering the faulty routers and their associated loss.

Step-by-step explanation:

To calculate the company's profit, we need to determine the number of faulty routers and the number of routers that are sold.

Given that 2% of the routers are faulty, we can find the number of faulty routers by multiplying the total number of routers (186.0 in this case) by 0.02. So, the number of faulty routers is 186.0 x 0.02 = 3.72.

To find the number of routers that are sold, we subtract the number of faulty routers from the total number of routers. Therefore, the number of routers that are sold is 186.0 - 3.72 = 182.28.

Now, let's calculate the profit. For each router sold, the company makes a profit of $51.5. So, the profit from selling 182.28 units is 182.28 x $51.5 = $9397.62.

Since there are 3.72 faulty routers, which result in a loss of $4.9 each, the total loss due to faulty routers is 3.72 x $4.9 = $18.19.

To find the overall profit or loss, we subtract the loss from the profit. Therefore, the profit (or loss) the company can expect to make from selling 186.0 units is $9397.62 - $18.19 = $9380.43.