Question

A manufacturer of lighting fixtures produces a certain lamp at a cost of $25.50. The fixed costs for producing lamps each monarch are $2400. How many lamps can be produced each month of the cost of production is to be kept below $3420?

Answer 1

2400 + 25.50x < 3420
25.50x < 3420 - 2400
25.50x < 1020
x < 1020 / 25.50
x < 40 <==

Answer 2

Explanation:

The manufacturing of any product mainly consists of two types

1) Fixed 2) Variable

Fixed costs remain constant whatever the units be produced

Variable costs directly vary with number of units produced

Hence we get here

Total cost = Fixed cost+variable cost =
`2400+25.50x`

where x = no of units produced

Since cost is to be below 3420 dollars,

`2400+25.50x<3420\\25.5x<1020\\\\x<(1020)/(25.5) =(68)/(1.7) \\x<40 units.`