Answer:
To get an overall profit of $100,000, then 3,571 items is needed to be produced
Step-by-step explanation:
Mathematically;
Profit = Revenue - Production cost
In the question, we are told that the profit we are expecting is $100,000
Let the number of items to be produced for sales be x items
Now let’s look at the production cost ;
The production cost will be number of items for sale * production cost = 15 * x = $15x
Now, we need to add the start-up cost to the production cost to get the total amount spent on production;
Mathematically the total amount would be = $25,000 + $15x
Let’s look at the revenue;
The revenue will be selling price of each item * price of each item;
Mathematically, that would be 50 * x = $50x
So therefore;
50x - (25,000 + 15x) = 100,000
50x -25,000 -15x = 100,000
35x = 100,000 + 25,000
35x = 125,000
x = 125,000/35 = 3571.42 which is approximately 3,571 items
