A company that sells widgets has to pay $500 in maintenance fees each day and then it pays each worker $8 per hour. Each worker makes 5 widgets per hour, which are sold at $3.10 each. What is the least number of workers the company has to hire in order to make a profit in an 8-hour workday?
Total costs = 500 + 8 * 8x =
Fixed cost + (hrs per day)( hourly wage rate) (x) =
500 + 64x where x is the number of workers we need
Total Revenue =
(hrs per day) (number of widgets/hour)(sales price/widget) (x) =
8 * 5 * 3.10 * x = 124x
And we want to solve this
124x > 500 + 64x subtract 64x from both sides
60x > 500
x > 500/60
x > 8.33 workers
So...we need 9 workers (at a minimum )
500 = fixed cost
n 8 x 8 = labor cost
n x 5 x3.1 x 8 = money brought in from sales
500 + n 8x8 = n x 5 x 3.1 x 8
500 + 64n = 124 n
500 = 60n
n = 8.33 ~~ 9 employees
I got 8.33/9 as well having the same work, but it is wrong? Do you see anything wrong with your work?
It would change if the COST of producing the Widgets were included....but that info was not given in the question......Was it to be included but omitted?