A company sells desks for $155 each. To produce a batch of x desks, there is a cost of $83 per desk and a fixed or setup cost of
$9,300 for the entire batch. Determine a function that gives the profit in terms of the number of desks produced. What is the least number of desks the company can sell in order to have a profit of $11,000?
If the number of desks sold is represented by "d", then the revenue (R) is R = 155d and the costs (C) is C = 9300 +83d
The profit (P) is the difference between revenue and cost. P = R - C P = 155d -(9300 +83d) P = 72d -9300 We want the profit to be a minimum of 11,000, so we have 11000 ≤ 72d - 9300 20300 ≤ 72d 281 17/18 ≤ d
The company must sell at least 282 desks to have a profit of $11,000.
