Use the information below to answer the following question(s).The following information is for Winnie Company:

-Fan Inc.is a nonprofit organization that supplies fans during the summer for individuals in need.Fixed costs are $500,000.The fans cost $40.00 each.The organization has a budgeted appropriation of $1,200,000.How many people can receive a fan during the summer?

Question

Use the information below to answer the following question(s).The following information is for Winnie Company:
 
-Fan Inc.is a nonprofit organization that supplies fans during the summer for individuals in need.Fixed costs are $500,000.The fans cost $40.00 each.The organization has a budgeted appropriation of $1,200,000.How many people can receive a fan during the summer?

Quizplus · Accepted Answer

To calculate the number of people who can receive a fan during the summer, we need to use the following formula:

Number of people = (Budgeted appropriation - Fixed costs) / Cost per fan

Number of people = ($1,200,000 - $500,000) / $40.00 = 17,500

Therefore, the answer is B, 17,500 people.

Use the Information Below to Answer the Following Question(s)