A company sells shoes at $$ R 699.00 $$ per pair. Their fixed costs are $$ R 560,000.00 $$ per month with the cost of producing each shoe pair being $$ R 320.00 $$. In order to make a profit, what is the minimum number of pairs of shoes do they need to sell per month?

Question

UpStudy AI · Accepted Answer

Let $$ x $$ be the number of pairs of shoes sold per month.

1. The revenue from selling $$ x $$ pairs is:
   $$
   699x
   $$
   
2. The total cost consists of fixed costs ($$ R560,000 $$) and variable costs ($$ R320 $$ per pair):
   $$
   560000 + 320x
   $$

3. To break even (i.e., make a profit or at least no loss), the revenue must be equal to or greater than the total cost:
   $$
   699x \geq 560000 + 320x
   $$

4. Subtract $$ 320x $$ from both sides to isolate the term with $$ x $$:
   $$
   699x - 320x \geq 560000
   $$
   $$
   379x \geq 560000
   $$

5. Solve for $$ x $$ by dividing both sides by 379:
   $$
   x \geq \frac{560000}{379}
   $$
   $$
   x \geq 1477.31
   $$

6. Since the company cannot sell a fractional pair of shoes, they must sell at least the next whole number:
   $$
   x = 1478
   $$

Thus, the company needs to sell a minimum of $$ 1478 $$ pairs of shoes per month to make a profit.
The company needs to sell at least 1,478 pairs of shoes per month to make a profit.

A company sells shoes at per pair. Their fixed costs are per month
with the cost of producing each shoe pair being . In order to make a profit, what
is the minimum number of pairs of shoes do they need to sell per month?

Upstudy AI Solution

Answer

Solution

The Deep Dive

Related Questions

Latest Economics Questions

A company sells shoes at per pair. Their fixed costs are per month with the cost of producing each shoe pair being . In order to make a profit, what is the minimum number of pairs of shoes do they need to sell per month?