A computer manufacturer produces a certain electronic component at a cost of $100 per component. Shipping costs for delivering the components are $2 per unit. Further, the manufacturer has costs of $10,000 a month related to the electronic component regardless of how many it produces. If the manufacturer produces and sells 1000 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) 122
B) 112
C) 134
D) 108
E) 101
$10000 is a fixed cost   Each component is $102 ($100 to produce, $2 to ship)   Manufacturer will be producing and selling 1000 components   so therefore the equation to find price would be   1000*p = 10000+(1000*100)+(1000*2)   p = (10000+100000+2000)/1000= 
<gadget id="calculator">(10000+100000+2000)/1000</gadget>
<output>112</output>
112   Answer: 112
<result>B</result>
A computer manufacturer produces a certain electronic component at a cost of $100 per component. Shipping costs for delivering the components are $2 per unit. Further, the manufacturer has costs of $10,000 a month related to the electronic component regardless of how many it produces. If the manufacturer produces and sells 1000 components a month, what is the lowest price it can sell them for such that the costs don't exceed the revenues?