The Profit Equation for Computer Accessories

Profit Calculation for Computer Accessories

The price that a company charged for a computer accessory is given by the equation mc013-1.jpg, where x is the number of accessories that are produced, in millions. It costs the company $10 to make each accessory. The company currently produces 2 million accessories and makes a profit of $100 million dollars.

Finding the Number of Accessories

Let's set up the equation for profit:

Profit = Revenue - Cost

Profit = Price * Quantity - Cost * Quantity

Profit = (mc013-1.jpg) * 2 - $10 * 2

Profit = ($20 million) - ($20 million)

Profit = $100 million

Now, we need to find out what other number of accessories produced yields approximately the same profit.

Finding the Number of Accessories for the Same Profit

Since the profit is $100 million for 2 million accessories, we need to find the number of accessories that would result in the same profit.

Let x be the number of accessories produced.

Profit = (mc013-1.jpg) * x - $10 * x

$100 million = (mc013-1.jpg) * x - $10x

MC013-1.jpg = $110 - $10 = $100

MC013-1.jpg = $110/x

x = 45 million accessories

Therefore, the number of accessories that yields approximately the same profit is 45 million.