Question

A manufacturing company spends $1200 each day on plant costs plus $7 per item for labor and materials. The items sell for $23 each. How many items must the company sell in one day to equal its daily costs?

Answer 1

Answer:

Company must sell 75 items to match the daily costs.

Step-by-step explanation:

Let $x$ be the number of items the company must sell to match the daily costs.

Money spent each day on plant = $\ 1200$

Money spent on labor and materials on each item = $\ 7$

Money spent on labor and materials on $x$ items = $\ 7x$

Total money spent or total cost = $1200 + \ 7x ...... (1)$

Sales price for 1 item = $\ 23$

Sales price for $x$ items = $23x ...... (2)$

Equating the equation (1) and (2) so that the company can match the daily costs with sales price:

$\Rightarrow 1200 + 7x = 23x\\\Rightarrow 16x = 1200\\\Rightarrow x = 75$

Company must sell 75 items to match the daily costs.