Answer: The correct option is first, the number of basketball hoops did the company previously produce to make the same profit is 1.3 million hoops.
Explanation:
Let the number of basketball hoops did the company previously produce to make the same profit be x.
Total Revenue = Price * Quantity
The total revenue in million dollars is,
The total cost in million dollars is,
Total Cost = One unit cost * Quantity
Profit = Total Revenue - Total Cost
The profit is 15 million.
The value of x is 1 and .
The production is always positive therefore the value of x either 1 or 1.3. Since 1 million is not available in the options therefore the the correct optin is 1.3 million hoops.