The problem states that a company has a variable cost of $4 per unit and a fixed cost of $20000. The selling price per unit is $8. We need to find the number of units, $q$, that must be sold for the company to earn a profit.

1. Problem Description

The problem states that a company has a variable cost of $4 per unit and a fixed cost of$

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0. The selling price per unit is $

8. We need to find the number of units, $q$, that must be sold for the company to earn a profit.

2. Solution Steps

First, let's define the total cost.

Total cost = Fixed cost + (Variable cost per unit * Number of units)

Total cost $= 20000 + 4q$

Next, let's define the total revenue.

Total revenue = Selling price per unit * Number of units

Total revenue $= 8q$

For the company to earn a profit, the total revenue must be greater than the total cost.

Total revenue > Total cost

$8q > 20000 + 4q$

Now, we solve for $q$:

$8q - 4q > 20000$

$4q > 20000$

$q > \frac{20000}{4}$

$q > 5000$

3. Final Answer

$q > 5000$

So the answer is (b).