A manufacturing company has the following fixed monthly costs and unit variable costs:
Rent = $2,200
Utilities = $375
Variable costs for materials and assembly = $13.25/unit
Monthly labor = $750
Given is the product is sold at $24.99 per unit
Let the number of units sold be x
Adding total cost = [tex]2200+375+750=3325[/tex]
Equation becomes:
[tex]3325+13.25x=24.99x[/tex]
[tex]11.74x=3325[/tex]
x= 283.21
So, rounding it to nearest whole number we get, 283 units.
