Question

Suppose consumers will purchase q units of a product at a price of StartFraction 100 Over q EndFraction plus 7 dollars per unit. What is the minimum number of units that must be sold in order that sales revenue be greater than ​$8000​? The minimum number of units sold must be greater than ?

Answer 1

Total number of units = q
Cost of each unit = 100/q + 7
Total cost of q units = q(100/q +7) = 100+7q

To make revenues greater than $8,000

8000<100 +7q
8000-100 < 7q
7900<7q
q>7900/7
q>1128.58
q>1129 units

Therefore, the minimum number of units sold must be greater than 1129 units.