A company manufactures and sells slippers. The price it charges wholesalers is $18 per pair. The company has fixed annual costs of $30,000. In addition, it costs the company $4.50 to make each pair of slippers. Use this information for Problems 7–12. SIMPLIFY ANSWERS

Given :

A company manufactures and sells slippers. The price it charges wholesalers is $18 per pair.

The company has fixed annual costs of $30,000.

In addition, it costs the company $4.50 to make each pair of slippers.

To Find :

The minimum slippers that company will sell to get all their cost back.

Solution :

Let, amount of slippers sold is x.

So, profit, P = (18-4.5)x

Cost of making x slippers, C = 4.5x + 30000

( 18-4.5 )x = 4.5x + 30000

9x = 30000

x = 3333.33

Since, number of slippers cannot be in fraction.

So, x = 3334

Therefore, number of slippers that company should sell minimum is 3334.

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step-by-step explanation:

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