A software company is releasing one pair of their products on a CD. The maufacturer charges a $5,500.00 setup free and $1.00 per CD. Approximately how many CDs must be produced so that the total cost per CD is $3.50?

a. 1,222 CDs
b. 2,200 CDs
c. 1,571 CDs
d. 5,500 CDs

Question

A software company is releasing one pair of their products on a CD. The maufacturer charges a $5,500.00 setup free and $1.00 per CD. Approximately how many CDs must be produced so that the total cost per CD is $3.50?

a. 1,222 CDs
b. 2,200 CDs
c. 1,571 CDs
d. 5,500 CDs

whpalmer4 · Answer

$$C = $5500 + $1n$$ if $n$ is the number of CDs produced and $C$ is total cost.  If we want cost per CD = $3.50, then 

$$C/n = $3.50$$Substitute the first expression for $C$ into the second equation and solve for $n$.