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
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 |
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