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26 July, 09:04

A software company is releasing one of their products on a CD. The manufacturer charges a $5,500 setup fee and $1.00 per CD. Approximately how many CDs must be produced so that the total cost per CD is $5.50?

A) 1,222 CDs

B) 2,200 CDs

C) 1,571 CDs

D) 5,500 CDs

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Answers (1)
  1. 26 July, 12:42
    0
    Given:

    set-up fee 5,500

    variable fee 1 per CD.

    Cost per CD is $5.50

    5.50 - 1 = 4.50

    5,500 / 4.50 = 1,222 CDs Choice A.

    1*1,222 = 1,222

    1,222 + 5,500 = 6,722

    6,722/1,222 = 5.50
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