Question

The Moore Division of Block C Enterprises manufactures and sells specialty semiconductors. Moore sells 1400 of one of these specialized semiconductors each month at a price of $1200 each. Variable costs amount to $1,000,000, and fixed costs are $400,000. Currently Moore has a defect rate of 7 percent (which are chips returned by customers, scrapped, or replaced). Note that the variable costs include the cost of producing the defective chips. Calculate the total number of this semiconductors actually produced each month.

options: ***please explain how to calculate

	1369 chips
	1437 chips
	1506 chips
	1577 chips
	1649 chips
	1723 chips
	1798 chips
	1932 chips

Answer 1

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