Art Jae produces two types of water filters. One attaches to the
faucet and cleans all water
that passes through the faucet. The other is a pitcher-filter that
only purifies water meant for drinking.
Revenue and cost information for each product appears below:
● the unit that attaches to the faucet is sold for $70 and has variable costs of $30
● the pitcher-filter sells for $80 and has variable costs of $45
● fixed costs total $424,000
● Art Jae sells 4 faucet models for every 3 pitcher-filters sold
Calculate the number of units of the
faucet-model that must be sold in
order for Art Jae
to earn a target profit of $212,000.
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