What is the no of units?

Question

Tumble Company sells coats for $175.00 each. The variable costs per coat are $71.50 and the fixed costs per month are $45,000.00. How many coats must be sold to make a profit of $3,000.00 in a month?

Answer 1

1.) Define your variables

x= number of coats that must be sold (quantity)

 

 

2.) Set up your equations

Revenue= price * quantity = 175 * x

 

Cost = variable cost + fixed cost = 71.50x +45000

 

Profit = revenue - cost = 175x - (71.50x + 45000) = 175x -71.50x - 45000 = 3000

 

 

3.) Solve the profit equation for x

175x - 71.50x - 45000 = 3000

 

 

I'll let you finish the equation.