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Fixed cost are 4500 per month. Variable cost per mug is 5 and the company sells each mug for 10. If the company aims to make a monthly profit of 1000, how many mugs must they sell?
Fixed cost are 4500 per month. Variable cost per mug is 5 and the company sells each mug for 10. If the company aims to make a monthly profit of 1000, how many mugs must they sell?
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more than 4 weeks ago
Let x be the number of mugs the company must sell to make a monthly profit of 1000.
Total cost = Fixed cost + Variable cost Total cost = 4500 + 5x
Total revenue = Selling price per mug * Number of mugs sold Total revenue = 10x