Question

A camera manufacturer spends $2,100 each day for overhead expenses plus $9 per camera for labor and materials. The cameras sell for $14 each. a. How many cameras must the company sell in one day to equal its daily costs? b. If the manufacturer can increase production by 50 cameras per day, what would their daily profit be?

Answer 1

A. The profit for each camera itself is $5 a camera. So, to make $2,100 dollars they would have to sell 420 cameras (2,100 / 5 = 420).

B. If they sold an extra 50 cameras a day, since they make $5 a camera, that would give them an extra profit of $250 a day.

Answer 2

A. The company must sell 420 cameras, to make it equal to daily costs.
B. For making 50 more cameras each day, they'd make $250 dollars more per 50 cameras.

A. To find this, you can simply multiply 420 by $14. This will give you how much they make from selling that many cameras ($5,880). Next you need to multiply 420 by 9 (labor an material cost per camera), then add $2,100 (expenses). This will give you the same cost ($5,880), thus making them equal, and proving 420 is the answer.

B. To find this, you do the same steps as above, by replacing 420 with 470, (470*$14 = $6,580) and (470*9 + $2,100 = $6,330). Then you subtract $6,330 from $6,580. Thus getting $250.

I hope this helps!