A computer manufacturer produces a certain electronic component at a cost of $75 per component. Shipping costs for delivering the components are $2 per unit. Further, the manufacturer has costs of $16,500 a month related to the electronic component regardless of how many it produces. If the manufacturer produces and sells 150 components a month, what is the lowest price it can sell them for such that the costs don't exceed the revenues?
Pick.
A) $28
B) $187
C) $110
D) $138
E) $192
This question can be solved easily using a equation model.   150*p = 16500(fixed cost) + 150*75+150*2.   = 16500 + 11250 + 300   P= $187   $187
<result>B</result>
A computer manufacturer produces a certain electronic component at a cost of $75 per component. Shipping costs for delivering the components are $2 per unit. Further, the manufacturer has costs of $16,500 a month related to the electronic component regardless of how many it produces. If the manufacturer produces and sells 150 components a month, what is the lowest price it can sell them for such that the costs don't exceed the revenues?