Question

A company that manufactures cell phones has been given a quarterly operating budget of $1,620,151.13. 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 $292,388.00, and the cost to manufacture each cell phone is $76.19. 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?
A. 17,427
B. 9,752
C. 13,589
D. 25,102

Answer 1

Answer:

A

Step-by-step explanation:

Set up equation

$76.19x + 292388 + 1620151.13$

Subtract 292,388 from 1,620,151.13

$76.19x + 292388 - 292388 = 1620151.13 - 292388$

$76.19x = 1327763.13$

Divide

$\frac{76.19x}{76.19} = \frac{1327763.13}{76.19}$

$x = 17427$