Question

A greeting card company can produce a box of cards for $7.50. If the initial investment by the company was $50,000, how many boxes of cards must be produced before the average cost per box falls to $10.50?

Answer 1

Answer:

If cost of one box of card is $7.50 then the no of cards produced is 6667 cards and if cost of one box of card is $10.50 then the no of cards produced is 4762 cards

Step-by-step explanation:

The cost of one box of cards = $7.50

Initial investment = $50,000

No of box of cards produced = Initial investment / cost of one box of card

No of box of cards produced = 50,000/7.50

No of box of cards produced = 6667 cards.

if the cost of one box of cards is increased = $10.50

No of box of cards produced = Initial investment / cost of one box of card

No of box of cards produced = 50,000/10.50

No of box of cards produced = 4762 cards.

So, if cost of one box of card is $7.50 then the no of cards produced is 6667 cards and if cost of one box of card is $10.50 then the no of cards produced is 4762 cards