Question

A furniture manufacturer must pay $16.91 to make a certain kind of chair, which it can sell for $55.75. If the manufacturer has starting overhead costs of $18,340, not including production costs, how many chairs must it sell to realize a profit of $24,850, to the nearest chair?
a.
1,112
b.
918
c.
775
d.
640


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Let n = number of chairs. Profit = (55.75 − 16.91)n − 18,340 = 24,850.
So 38.84n = 24,850 + 18,340 = 43,190, hence n = 43,190 / 38.84 ≈ 1,111.998 ≈ 1,112.

Answer: A.