AMA PCM Question Answer
Cuppa, a coffee-mug manufacturer, invests money in procuring equipment to produce custom prints on coffee mugs. Cuppa also releases a new line of eco-friendly porcelain mugs priced at $20 each. Cuppa spends $24,000 per month on its production, including employees' salaries. The cost of producing and packaging each mug is $12. Cuppa has a target profit of $8,000 a month. How many mugs should Cuppa sell to gain this profit?