A product costing 60 cents per unit to produce had been selling at the average rate of 1,200,000 units per month. After the product was improved, sales increased to an average of 2,000,000 units per month. However, the new product cost five percent more to produce. If the manufacturer's selling price in each instance was 75 cents per unit, what was the manufacturer's added profit per month with the newer product?
A.$20,000
B.$60,000
C.$200,000
D.$240,000
E.One cannot tell from the information given.
answer: B
2006-12-02 22:16:59 · 9 answers · asked by rowie 1 in Science & Mathematics ➔ Mathematics
i have (problem solving test) and am practicing plzz i need clear answer thx!
2006-12-02 22:25:07 · update #1
.60 original cost * 5% increase=
.60*1.05 = .63 new product cost
profit on old product
1,200,000 * .75 = 900,000 gross sales
1,200,000 * .60 = 720,000 cost
180,000 profit
profit on new product
2,000,000 * .75 = 1,500,000 gross sales
2,000,000 * .63 = 1,260,000 cost
240,000 profit
240,000 - 180,000 = 60,000 increase in profit
2006-12-02 22:28:47 · answer #1 · answered by tma 6 · 1⤊ 0⤋
original cost = 60, volume produced per month = 1,200,000
new cost = 60 + 5 x 60/100 = 63 c
new volume produced per month = 2,000,000
new profit per unit = 75 -63 = 12c
so if the selling price remains constant the profit made per unit has decreased by 3 cents.
that means that for the first 1,200,000 units sold the profit has DECREASED by $1200000/100 x 3 = $36,000
BUT there is an increase in profit from the extra 800,000 units of
$800000/100 * (75-63) = $96,000
Therefore the NET change is $96,000 - 36,000 = $60,000
2006-12-02 22:35:40 · answer #2 · answered by Cubic Spline 3 · 0⤊ 0⤋
x² = x+6 x² - x - 6 = 0 (x - 3)(x + 2) = 0 So x = 3 or - 2 x² + 2x = 0 x(x + 2) = 0 So x = 0 or - 2 60 = x² - 4x x²- 4x - 60 = 0 (x - 10)(x + 6) = 0 So x = 10 or -6 4x = x² - 40 5 x² - 4x - 40 5 = 0 (x - 9)(x + 5) = 0 So x = 9 or -5 -6x = x² + 9 x² + 6x + 9 = 0 (x + 3)(x + 3) = 0 (x + 3)² = 0 So x = -3 -15=x² + 8x x² + 8x +15 = 0 (x + 5)(x + 3) = 0 So x = -5 or -3 -9x = x² + 14 x² + 9x + 14 = 0 (x + 7)(x + 2) = 0 So x = -7 or - 2 wish that helps. =D
2016-12-10 20:54:41 · answer #3 · answered by ? 4 · 0⤊ 0⤋
profit is selling - cost x volume
75 - 60 x 1200000 = p1
after upgrade the new cost is 5% more than 60 = 63 so the new profit is...
75 - 63 x 2000000 = p2
the added profit is therefore p2 - p1
gotta leave you something to do...lol
2006-12-02 22:25:15 · answer #4 · answered by OhSimonsBinDrinkin 4 · 0⤊ 1⤋
D
Unit margin drops to 12 cent per unit
So $240,000 profit per month.
Which is up from $180,000 per month with the old unit.
2006-12-02 22:27:53 · answer #5 · answered by JimboBimbo 2 · 0⤊ 1⤋
1,200,000(0.75 - 0.60) =
2,000,000(0.75-1.05*60) =
2,000,000(0.75 - 0.63) =
2,000,000*0.12 - 1,200,000*0.15 =
1,200,000(0.20 - 0.15) =
1,200,000(0.05) = 60,000
2006-12-02 22:34:50 · answer #6 · answered by Helmut 7 · 0⤊ 0⤋
Is this homework on the internet? :)
2006-12-02 22:18:14 · answer #7 · answered by Rawkus 3 · 0⤊ 1⤋
B
2006-12-02 22:19:23 · answer #8 · answered by Rammohan 4 · 0⤊ 1⤋
AND YOUR POINT BEING.
2006-12-02 22:19:05 · answer #9 · answered by red beret 4 · 0⤊ 1⤋