A store sells toaster ovenstoaster ovens for $4646 each, retail price. The wholesale cost to stock the ovensovens is $ 28$28 e
ach. The fixed cost associated with acquiring the ovensovens, storing them in inventory, using shelf space, and advertising the ovensovens for sale is $25002500. a. Write a function for the total cost of stocking the ovensovens for sale. b. Write a function for the total revenue received from selling the ovensovens. c. Write a system of equations and determine the number of ovensovens that must be sold to break even.
Stocking cost = $28 per toaster Fixed cost = $2500
a) Let the number of toasters be 'x' The total cost of stocking for sale = 28x + 2500
b) Let the number of toasters be 'x' Total revenue received from selling the toasters = 46x
c) Break-even is when the cost of production is equal to profit made So, we can set up the break-even equation as: Production cost = Revenue cost 28x + 2500 = 46x 2500 = 46x - 28x 2500 = 18x x = 138.9 ⇒ Rounded to 139 ovens
