Question

Help with equations



A division of a company that manufactures widgets has been given an annual operating budget of $74,449.00. The factory's operating costs are determined by two factors - overhead fixed costs of $23,545.44 per year, and a cost of $32.60 to produce each widget.

Assuming that the division is constrained by their budget (as in, they cannot exceed their budget), what is the highest number of widgets that the company can produce over the course of the year?

1,562
1,561
2,283
300

Answer 1

Total budget is $74,449.

Irrespective of number of widgets there is a fixed over head cost of $23,545.44

Now we can just subtract this amount from total budget so that we get

$74449 - $23545.44 = $50,903.56

Cost to manufacture each widget is given as $32.60

So now just divide $50.903.56 by $32.60 = $50,903.56/$32.60 = 1561 Which is ur answer

Answer 2

thank you

Answer 3

Anytime