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E20-027 · Question #89

A company has estimated a cost of $220,000 to build its new data center. The new data center will serve an additional 20,000 clients for which the company will gain $30,000 per month. In addition…

The correct answer is A. 8 months. See the full explanation below for the reasoning.

Question

A company has estimated a cost of $220,000 to build its new data center. The new data center will serve an additional 20,000 clients for which the company will gain $30,000 per month. In addition, the company has agreed to spend $1,000 every month in support costs. In order to achieve a break-even point, what is the minimum time period the data center must be operational?

Options

  • A8 months
  • B9 months
  • C10 months
  • D11 months

How the community answered

(21 responses)
  • A
    76% (16)
  • B
    5% (1)
  • C
    5% (1)
  • D
    14% (3)

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