On October 23, 2001, Apple released the first iPod. To date, Apple has sold over

Question

On October 23, 2001, Apple released the first iPod. To date, Apple has sold over 269,000,000 iPods and counting. The iconic white earphones shipped with every iPod are manufactured solely by Fostex in Japan. A Fostex engineer is considering a new machine to manufacture the box containing the earphones when they are shipped to the customers. Use the graph to answer the question. How much profit does Machine #2 make after processing 4 x 10^7 boxes? A. Machine #2 is operating at a loss B. $6 times 10^7 C. $1 times 10^7 D. $1.5 times 10^7

Explanation / Answer

the answer is (c) because total revenue for 4*10^7 boxes is 6*10^7 but the cost of machine 2 for box 4*10^7 is 5*10^7.

so overall revenue is 5*10^7 - 4*10^7 = 1*10^7

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