7. A company manufactures shaving sets for $5 each and sells them for $7 each. How many shaving sets must be sold for the

company to recover an initial investement of $45,000 and earn an additional $15,000 as profit?

The company has to sell

$15,000 as profit.

shaving sets to recover an initial investment of $45,000 and earn an additional

The company has to sell 30,000 sets.

Step-by-step explanation:

Cost of each set = $5

Sale of each set = $7

Profit on each set = $7 - $5 = $2

Let

Number of sets = x

Profit on x number of sets = ($2) · x

Recovery of initial investment = $45,000

Additional profit = $15,000

Total Profit desired = $45000 + $15000 = $60,000

Which means that we have to find the number of sets sold, which can earn us a total profit $60,000, from which $45000 are the recovery of initial investment and $15000 are additional profit.

We can conclude that:

Profit on x number of set = Total profit desired

($2) · x = $60,000

x = $60,000 / $2

x = 30,000 sets