Solve the Problem $\mathrm { y } = \frac { 28,000 + 220 \mathrm { x } } { \mathrm { x } }$

question 418

Multiple Choice

Solve the problem.
-The formula $\mathrm { y } = \frac { 28,000 + 220 \mathrm { x } } { \mathrm { x } }$ models the average cost per unit, $\mathrm { y }$ , for Electrostuff to manufacture $x$ units of Electrogadget IV. How many units must the company produce to have an average cost per unit of $\$ 410$ ?

• A) 147 units
• B) 149 units
• C) 116 units
• D) 127 units

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Definitions:

Coupon Rate

The annual interest rate paid by a bond issuer to its bondholders, expressed as a percentage of the bond's face value.

Inflation Rate

The speed at which prices for products and services ascend, resulting in a decline in how much can be bought.

Market Conversion Value

The value of a convertible security if it is converted into a different form, usually stock, at its current market price.

Conversion Ratio

The number of common shares received upon the conversion of a convertible security, such as a convertible bond or preferred stock.