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27 December, 07:59

For a company that manufactures thermostats, the combined cost for labor and material is $5 per thermostat. Fixed costs (costs incurred in a given period, regardless of output) total cost equation is C 5x + 60,000. If the selling price of a thermostat is $7, then the revenue equation is R = 7x. How many thermostats must be sold for the company to earn a profit? Be sure to show the inequality you setup and the process by which you solve it. Include units on your answer. $60,000. So, the are

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  1. 27 December, 09:26
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    To earn a profit atlease 30,001 units of thermostats must be sold i. e not less than 30,000 thermostats

    Step-by-step explanation:

    Data provided:

    The combined cost for labor and material = $5 per thermostat

    Total cost equation, C = 5x + 60,000

    where, x is the number of thermostats

    selling price of a thermostat = $7

    The revenue equation, R = 7x

    Now,

    For the company to earn a profit

    Revenue should be greater than the cost incurred

    mathematically,

    R > C

    or

    7x > 5x + 60,000

    or

    2x > 60,000

    or

    x > 30,000

    Hence,

    To earn a profit atlease 30,001 units of thermostats must be sold i. e not less than 30,000 thermostats
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