The Chilliwack Volunteer Fire Department is selling cookbooks as a fundraiser. Each cookbook costs $3 to produce, and total fixed costs are $400. If the cookbooks sell for $8 each, how many do they have to sell to earn a $5,000 profit?
A) 540
B) 1,080
C) 2,160
D) 2,334
E) 5,000

Question

Quizplus · Accepted Answer

To earn a profit of $5,000, the total revenue needed is:

Total Revenue = Total Cost + Profit

Total Revenue = (Cost per cookbook x Number of cookbooks) + Profit

Total Revenue = ($3 x N) + $5,000

Total Cost = Fixed Costs + Variable Costs

Total Cost = $400 + ($3 x N)

Setting the two equations equal to each other and solving for N:

($3 x N) + $5,000 = $400 + ($3 x N)

$4,600 = $3 x N

N = 1,533.33

Since we can't sell a fraction of a cookbook, we need to round up to the nearest whole number:

N = 1,534

Therefore, they need to sell 1,534 cookbooks to earn a $5,000 profit.

The Chilliwack Volunteer Fire Department Is Selling Cookbooks as a Fundraiser