Question 878588: A) A shop buys tablets for $102.00 each and sells them for $180 each. The shop has a fixed cost of $35,000, create an equation that expresses the business's profit as a function of the number of tablets sold?
B) Use this equation to determine how many tablets must be sold in order for the shop to break even?
Answer by Jstrasner(112)   (Show Source):
You can put this solution on YOUR website! Hello,
So for this problem we need to figure out how much money the business will make after paying for the fixed cost.
Let's call profit P:
Profit (P) equals the number of products sold (units) times the profit from each unit sold ($180-$102=$78) minus the fixed cost.
In other words:
P = (units x $78) - $35,000
That is the answer for question A.
For B,
break even means the business makes 0 profit. So we plug that into the equation:
$0 = units x $78 - $35,000
We want to get units on a side by itself so we first add $35,000 to both sides:
$0 + $35,000 = units x $78 - $35,000 + $35,000
Which becomes:
$35,000 = units x $78
We want to get rid of the $78 on the right side so we divide both sides by $78:
$35,000/$78 = units x $78 / $78
Which becomes:
448.71795 = units
So, we need to sell 449 (we should round up) units to break even.
I hope this helps!
|
|
|
