Question

dont shout incorporated earned a profit of $3,200,000 on a new and revolutionary hearing implant. Assume the company sold 10,000 implants, costing $350 each to make. At what price did the company sell each implant?

Answer 1

To find the selling price per implant, you can start by determining the total cost of producing the implants and then use the profit to find the total revenue.

1. **Calculate the total cost of production:**
\[
\text{Cost per implant} = 350 \text{ dollars}
\]
\[
\text{Total cost} = \text{Cost per implant} \times \text{Number of implants} = 350 \times 10,000 = 3,500,000 \text{ dollars}
\]

2. **Calculate the total revenue using profit:**
Profit is calculated as:
\[
\text{Profit} = \text{Total revenue} - \text{Total cost}
\]
Given that the profit is \$3,200,000:
\[
3,200,000 = \text{Total revenue} - 3,500,000
\]

Rearranging the equation gives:
\[
\text{Total revenue} = 3,200,000 + 3,500,000 = 6,700,000 \text{ dollars}
\]

3. **Calculate the selling price per implant:**
\[
\text{Selling price per implant} = \frac{\text{Total revenue}}{\text{Number of implants}} = \frac{6,700,000}{10,000} = 670 \text{ dollars}
\]

Therefore, the company sold each implant for **$670**.