A camera manufacturer spends $2250 each day for overhead expenses plus $6 per camera for labor and materials. The cameras sell for $16 each. How many cameras must the company sell in one day to equal its daily costs? If the manufacturer can increase production by 50 cameras per day, what would their daily profit be?

(2) Answers

16x = 2250 + 6x x = 225 So he must sell 225 cameras 16(275) = 4400 6(275) = 1650 4400 - (1650 + 2250) = 500 $500 profit


If I'm reading this correctly their daily costs are 2,250. Every time they sell a camera they are making 10 dollars, this is because it costs 6 dollars for labor and materials. Knowing this we can now divide 2,250/10, this gives us 225. Now the second part of the question. Because it says if they increase their production each day by 50 we know we can just add 50 to 225; we know that they make 10 dollars a camera. From here we just multiply 10 by 275, this gives us 2,750. Now we need to know their profit so we subtract 2,250 from 2,750 which leaves us with 500, so if they increase production they will be making 500 dollars in profit each day.

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