A computer manufacturer produces a certain electronic component at a cost of $80 per component. Shipping costs for delivering the components are $3 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? Choose one:
A) $193  B) $82  C) $110  D) $138  E) $192
This question can be solved easily using a equation model.   150*p = 16500(fixed cost) + 150*80+150*3.   = 16500+ 12000+ 450   P = 193   $193
<result>A</result>
A computer manufacturer produces a certain electronic component at a cost of $80 per component. Shipping costs for delivering the components are $3 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?