QuestionMay 22, 2025

If Profit is more than 10000 when fixed costs are 5000 and the price when producing 1000 units is 75 then variable cost is? between 60 and 75 less than 60 more than 75 Indeterminate, since not enough informatin is provided to solve the problem.

If Profit is more than 10000 when fixed costs are 5000 and the price when producing 1000 units is 75 then variable cost is? between 60 and 75 less than 60 more than 75 Indeterminate, since not enough informatin is provided to solve the problem.
If Profit is more than 10000 when fixed costs are 5000 and the price when producing 1000 units is 75 then variable cost is? between 60 and 75 less than 60 more than 75 Indeterminate, since not enough informatin is provided to solve the problem.

Solution
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Answer

less than \60 Explanation 1. Define Profit Formula Profit = Total Revenue - Total Costs. Total Revenue = Price per Unit \times Quantity. Total Costs = Fixed Costs + Variable Costs per Unit \times Quantity. 2. Set Up Inequality for Profit Given Profit > \10000, Fixed Costs = \5000, Price = \75, and Quantity = 1000. Substitute into the formula: 1000 \times 75 - (5000 + 1000 \times \text{Variable Cost}) > 10000. 3. Simplify Inequality 75000 - 5000 - 1000 \times \text{Variable Cost} > 10000. Simplifies to 70000 - 1000 \times \text{Variable Cost} > 10000. 4. Solve for Variable Cost 70000 - 10000 > 1000 \times \text{Variable Cost} leads to 60000 > 1000 \times \text{Variable Cost}. Thus, \text{Variable Cost} < 60.

Explanation

1. Define Profit Formula<br /> Profit = Total Revenue - Total Costs. Total Revenue = Price per Unit $\times$ Quantity. Total Costs = Fixed Costs + Variable Costs per Unit $\times$ Quantity.<br />2. Set Up Inequality for Profit<br /> Given Profit $>$ \$10000, Fixed Costs = \$5000, Price = \$75, and Quantity = 1000. Substitute into the formula: $1000 \times 75 - (5000 + 1000 \times \text{Variable Cost}) > 10000$.<br />3. Simplify Inequality<br /> $75000 - 5000 - 1000 \times \text{Variable Cost} > 10000$. Simplifies to $70000 - 1000 \times \text{Variable Cost} > 10000$.<br />4. Solve for Variable Cost<br /> $70000 - 10000 > 1000 \times \text{Variable Cost}$ leads to $60000 > 1000 \times \text{Variable Cost}$. Thus, $\text{Variable Cost} < 60$.
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