Wendy retails motor homes, which she buys for a sum that does not vary with the number she purchases from the manufacturer.She can sell 11 per week at $40,000.If she limits sales to 10, she can charge $41,000 each.She will sell 11 per week if the cost of each vehicle is no more than
A)$20,000.
B)$30,000.
C)$40,000.
D)$41,000.

Question

Quizplus · Accepted Answer

If Wendy sells 11 motor homes at $40,000 each, she earns $440,000 per week.
If Wendy sells 10 motor homes at $41,000 each, she earns $410,000 per week.
Thus, to sell 11 motor homes (and earn more profit), she cannot spend more than $30,000 per vehicle ($440,000 - $410,000 = $30,000). So, the answer is B.

Wendy Retails Motor Homes, Which She Buys for a Sum