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Sagot :
Evaluating the statements made by Thomas and Theresa, we can conclude that, for every 800 units sold, the company will make a profit of $24000. Hence, Theresa is correct.
Total Expenses :
(Variable cost per unit × number of units + Fixed cost)
Let number of units = n
- C(n) = 30n + 12000
Revenue :
- R(n) = 75n
Profit, P(n) :
- P(n) = R(n) - C(n)
Thomas statement :
n = 500
P(n) = 75(500) - [30(500) + 12000]
P(n) = 37500 - (15000 + 12000]
P(n) = 37500 - 27000
P(n) = $10500
Theresa statement :
n = 800
P(n) = 75(800) - [30(800) + 12000]
P(n) = 60000 - (24000 + 12000]
P(n) = 60000 - 36000
P(n) = $24000
Hence, Theresa's statement is correct.
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