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.
