document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1108148>Question 1108148</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You invest $500 for equipment to make kites. Each kite costs you $15 for materials. You sell each kite for $15. Complete a table for your cost and your revenue.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #723158 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=723158\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> c = your cost<BR>\n" );
document.write( "r = your revenue.<BR>\n" );
document.write( "p = your profit.\r<BR>\n" );
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document.write( "c = 500 + 15x.\r<BR>\n" );
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document.write( "x is the number of items you made\r<BR>\n" );
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document.write( "r = 15y.\r<BR>\n" );
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document.write( "y is the number you sold.\r<BR>\n" );
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document.write( "most of these problems assume you sell what you make, so your revenue equation becomes:\r<BR>\n" );
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document.write( "r = 15x.\r<BR>\n" );
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document.write( "your profit is what you have left over after you sell your kites.\r<BR>\n" );
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document.write( "if your profit is negative, then it is a loss.\r<BR>\n" );
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document.write( "for example, a profit of -3 is a loss of 3.\r<BR>\n" );
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document.write( "your profit equation is p = r - c.\r<BR>\n" );
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document.write( "assuming you sell what you make, then:\r<BR>\n" );
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document.write( "r = 15 * x<BR>\n" );
document.write( "c = 500 + 15 * x<BR>\n" );
document.write( "p = r - c = 15 * x - (500 + 15 * x).\r<BR>\n" );
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document.write( "simplifying the profit equation, you get:\r<BR>\n" );
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document.write( "p = 15 * x - 500 - 15 * x.\r<BR>\n" );
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document.write( "simplify this equation to get p = -500.\r<BR>\n" );
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document.write( "assuming you sell what you make, your profit will always be -500 which is a loss of 500.\r<BR>\n" );
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document.write( "the only way you can hope to make a profit is if the sale price is more than the cost to make each item.\r<BR>\n" );
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document.write( "for example, assume r = 25 * x, rather than 15 * x.\r<BR>\n" );
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document.write( "the profit equation becomes:\r<BR>\n" );
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document.write( "p = 25 * x - (500 + 15 * x).\r<BR>\n" );
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document.write( "simplify this equation to get:\r<BR>\n" );
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document.write( "p = 25 * x - 500 + 15 * x.\r<BR>\n" );
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document.write( "simplify this equation to get:\r<BR>\n" );
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document.write( "p = 10 * x - 500.\r<BR>\n" );
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document.write( "now you can begin to make a profit after you sell 50 kites.\r<BR>\n" );
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document.write( "this is because p = 10 * 50 - 500 gets you p = 500 - 500 = 0.\r<BR>\n" );
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document.write( "that's your break even point.\r<BR>\n" );
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document.write( "sell less than 50 and you take a loss.\r<BR>\n" );
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document.write( "sell more than 50 and you make a profit.\r<BR>\n" );
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document.write( "to make a table, you would do something like this:\r<BR>\n" );
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document.write( "variable cost is 15 dollars for each unit made.\r\n" );
document.write( "revenue is 15 dollars for each unit sold.\r\n" );
document.write( "number of units made is assumed to be equal to number of units sold.\r\n" );
document.write( "revenue is assumed to be variable only.\r\n" );
document.write( "profit is equal to revenue minus fixed cost minus variable cost\r\n" );
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document.write( "number   fixed cost   variable cost     revenue     profit\r\n" );
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document.write( "0           500            0              0          -500\r\n" );
document.write( "50          500            750            750        -500\r\n" );
document.write( "100         500            1500           1500       -500\r\n" );
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document.write( "</PRE>\r<BR>\n" );
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document.write( "now assume revenue was 25 dollars per unit.<BR>\n" );
document.write( "same table is used, except\r<BR>\n" );
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document.write( "variable cost is 15 dollars for each unit made.\r\n" );
document.write( "revenue is 25 dollars for each unit sold.\r\n" );
document.write( "number of units made is assumed to be equal to number of units sold.\r\n" );
document.write( "revenue is assumed to be variable only.\r\n" );
document.write( "profit is equal to revenue minus fixed cost minus variable cost\r\n" );
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document.write( "number   fixed cost   variable cost     revenue     profit\r\n" );
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document.write( "0           500           0                0          -500\r\n" );
document.write( "50          500           750              1250       0\r\n" );
document.write( "100         500           1500             2500       500\r\n" );
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document.write( "</PRE>\r<BR>\n" );
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