Question

A company that manufactures cell phones has been given a quarterly operating budget of $1,176,912.42. The company's quarterly operating cost consists of two costs: an overhead fixed cost and the manufacturing cost of each cell phone. The company knows that the overhead fixed cost per quarter is $247,638.00, and the cost to manufacture each cell phone is $55.14. If the company's quarterly operating costs cannot exceed the quarterly budget, then what is the maximum number of cell phones that they can manufacture during the quarter?

Answer 1

maximum is 16,853 cell phones

≤ 18.853

Explanation:

1,176,912.42. per quarter budget

247,638.00 per quarter fixed cost

We subtract then divide the amount cost of phones and ensure its less or rounded down.

1,176,912.42 -247,638 = 929274.42

929274.42 / 55.14 = 16853

16,852 < m ≤ 16,853