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E20-027 · Question #90

A company has estimated a cost of $240,000 to build its new data center. The new data center will serve an additional 20,000 clients for which the company will gain $35,000 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 $240,000 to build its new data center. The new data center will serve an additional 20,000 clients for which the company will gain $35,000 per month. In addition, the company has agreed to spend $2,000 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

(25 responses)
  • A
    72% (18)
  • B
    4% (1)
  • C
    16% (4)
  • D
    8% (2)

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