Question

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of​ $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of ​%. If the manufacturer currently makes tons of clothespins per​ year, which sell at per​ ton, what will be the increase in revenue next year from the new​ equipment?

Answer 1

$337,500

Step-by-step explanation:

the questions was missing some numbers. I looked for similar questions and found:

• increase in sales = 25​%
• current annual production in tons = 75
• sales price per ton = $18,000

increase in total sales = 75 tons x 25% = 18.75 tons

increase in revenue = 18.75 tons x $18,000 = $337,500

Since the question only asks for the increase in revenue, we do not have to calculate anything else.