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.