Acompany builds a new wing for its east branch and knows that each additional room will gain $1200 of profit. the construction company will cost $44,000 to construct the wing.
how many rooms are need to break even? (hint: you must pay the fee to the construction company.)
if you wanted to make twice as much profit as you spent, how many rooms would need to be built?

a. 37 rooms are need to break even.

b. 73 rooms are required to make twice as much profit as you spent.

Step-by-step explanation:

Revenue of the company from each additional room is $1200.

Total construction cost = $44,000.

At break even condition, total revenue is equal to total cost. In other words, the profit of the firm is zero at break even.

Let x be the number of rooms that are need to break even.

Total revenue of x room is

At break even,

Total revenue = Total cost

Divide both sides by 1200.

Therefore, 37 rooms are need to break even.

Let y be the number of rooms to make twice as much profit as you spent.

Total revenue of y room is

Total revenue = 2 × Total cost

Divide both sides by 1200.

Therefore 73 rooms are required to make twice as much profit as you spent.

there are no answer choices

step-by-step explanation: