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Maurinko [17]
3 years ago
14

Gina Chuez has considered starting her own custom greeting card business. With an initial start up cost of $1500, she figures it

will cost $0.45 to produce each card. In order to remain competitive with the larger greeting card companies, Gina must sell her cards for no more than $1.70 each. To make a profit, her income must exceed her costs. Determine the number of cards she must sell before making a profit.
Mathematics
2 answers:
nordsb [41]3 years ago
8 0
1500 + 0.45x < 1.70x
1500 < 1.70x - 0.45x
1500 < 1.25x
1500/1.25 < x
1200 < x.....so she would have to sell 1201 cards to make a profit

ioda3 years ago
4 0
The more she charges for her cards, the fewer cards she'll have to sell 
<span>to recover her start-up costs.  So naturally, she wants to charge as much </span>
<span>for each card as she can get away with. </span>

<span>Let's start out assuming she charges the maximum of $1.70 for each one </span>
<span>(and that there are customers willing to pay $1.70 to buy one.) </span>

It costs Gina $0.45 to produce a card, and she sells it for $1.70.
<span>Her profit from selling each card is    ($1.70 - $0.45)  =  </span>$1.25 profit.

<span>How many times does she need $1.25 in profit to get back the $1500 </span>
that she sank into the business to get it started ?

<span>                 ($1500) / ($1.25 per card)  =  </span>1,200 cards .

<span>That's the </span>minimum<span> number she must sell, and it only works if she </span>
<span>charges the full $1.70 for each card.  If she charges a lower price </span>
<span>for them, then she'll need to sell </span>more<span> cards to make up the $1500 . </span>
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