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A company making backpacks charges $29.99 for each backpack. It costs $6.45 to make each backpack. The company can make backpacks in multiples of 10 and there is $1,000 in fixed costs. The company wants to make at least $4,000 profit each week.

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A minimum of 220 backpacks must be produced to obtain the desired benefits.

Since a company making backpacks charges $ 29.99 for each backpack, and it costs $ 6.45 to make each backpack, and the company can make backpacks in multiples of 10 and there is $ 1,000 in fixed costs, and the company wants to make at least $ 4,000 profit each week, to determine how many backpacks should be produced, the following calculation must be performed:

  • 29.99 - 6.45 = 23.54
  • 500 x 23.54 - 1000 = 10,770
  • 250 x 23.54 - 1000 = 4.885
  • 220 x 23.54 - 1000 = 4,178.80
  • 210 x 23.54 - 1000 = 3,943.40

Therefore, a minimum of 220 backpacks must be produced to obtain the desired benefits.

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