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Alex17521 [72]
2 years ago
5

A company manufactures and sells personalized stationery. The weekly fixed cost is $3850 and it cost $3.00 to produce each packa

ge of stationery. The selling price is $6.50 per package. How many packages of stationery must be produced and sold each week for the company to generate a profit?
The company will generate a profit if;
more than or equal to
more than
less than or equal to
less than
|blank|packages of stationery are produced and sold each week.

(sorry forgot to add that part in last question, hope this one is better)
Mathematics
1 answer:
Sveta_85 [38]2 years ago
5 0

Answer:

  more than 1100

Step-by-step explanation:

The contribution margin for each package sold is ...

  $6.50 -3.00 = $3.50

The number of packages that must be sold to cover fixed costs is ...

  3.50n > 3850

  n > 1100 . . . . . . . divide by 3.50

The company will generate a profit if more than 1100 packages are produced and sold each week.

_____

<em>Additional comment</em>

If exactly 1100 packages are sold, then costs are covered, but profit is 0. In order for profit to be positive, more than 1100 packages must be sold.

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