A computer manufacturer produces a certain electronic component at a cost of $60 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 one
A) $28  B) $82  C) $172  D) $138  E) $192
This question can be solved easily using a equation model.   150*p = 16500(fixed cost) + 150*60+150*2.   = 16500 +9000 +300 =   P= $172.   $172
<result>C</result>
A computer manufacturer produces a certain electronic component at a cost of $60 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?