Question

you are starting your own buisness making candles. You spent $350 to get started and will charge each customer $85 for a case of candles. Which graph represents your profit?

Answer 1

Answer:

Option c.

Step-by-step explanation:

Missing options are attached below.

Given: Initial Investment is $350

           Selling price for each case of candles is $85.

Lets assume the number of case of candles be "x".

And let profit be "p".

The intitial investment will be negative as there is no immediate earning on it.

∴ Initial investment= -350

Profit increase with the number of customer buy the case of candles.

We know, $Profit= selling\ price - Cost\ price$

Here, cost is the amount spent in starting the business.

Now, $p= 85x-350$

Therefore, as per equation y intercept is -350 and slope is 85.

If divide the initial investment by selling price of each case of candles, we will get number of case of candle need to bought to get break even point of business, which is $Cost Price - Selling Price= 0$

∴ Number of cases of candles need to bought to get break even point= $\frac{350}{85}= 4.11$

Next, checking the graph, we find option c is correct as it is showing number of case of candles as 4.11 and profit as 0 (which is break even point).

Hence the answer is option c.