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The annual profit a company makes by selling computers is 17 million dollars and increasing at a rate of 5\% per year. The number of computers it sells per year is 3000 and increasing by 600 per year. (a) What is the average profit per computer sold

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hyderali230

Answer:

Average profit per computer sold

Current:

Average profit per computer sold = Income from sale of Computer / No. of computer sold

Average profit per computer sold = $17,000,000 / 3000 = $5,667

After growth:

Sales = $17,000,000 x 105% = 17,850,000

Number of Computers = 3000 + 600

Average profit per computer sold = Income from sale of Computer / No. of computer sold

Average profit per computer sold = $17,850,000 / 3600 = $4,958

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