Difficulty: Easy
Correct Answer: 200
Explanation:
Introduction / Context:
This is a break-even / target-profit computation using contribution analysis. Profit equals contribution per unit times quantity minus fixed cost. Solve the inequality to meet or exceed the required profit threshold.
Given Data / Assumptions:
Concept / Approach:
Contribution per unit = SP − VC = 20. Profit = Contribution * n − Fixed. Set Profit ≥ 1000 and solve for n. Choose the smallest integer n satisfying the inequality.
Step-by-Step Solution:
Verification / Alternative check:
At n = 200: Profit = 20*200 − 3000 = 4000 − 3000 = 1000 (meets requirement).
Why Other Options Are Wrong:
150, 250, 300, 400 do not represent the minimum satisfying value; only 200 is the least n with profit ≥ 1000.
Common Pitfalls:
Treating fixed overhead as per-unit, or using revenue instead of contribution to compute the threshold.
Final Answer:
200
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