Answer:
- <u>Funtime must sell 510 standard quadcopters and 340 deluxe quadcopters every month to breakeven.</u>
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- <u>Funtime must sell 840 standard quadcopters and 560 deluxe quadcopters to earn $ 7,700 monthly.</u>
Explanation:
<u>A. To breakeven, the revenue must equal the total costs.</u>
<u>1. Write the expresssion of revenue</u>
Revenue = price × number of units
Revenue from standard quadcopter
Naming s the number of standard quadcopters sold:
Revenue from deluxe quadcopter
Naming d the number of deluxe quadcopters sold:
Total revevue:
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<u>2. Write the expression of cost</u>
Purchase price of standard quadcopters
Purchase price of deluxe quadcopters
Fixed monthly expenses
Total cost:
<u>3. Relation between number of deluxe quadcopters and standard quadcopters</u>
Two deluxe quadcopters for every three standard quadcopters
<u>4. Substitute d with (2/3)s in the expressions, writhe the equation and solve</u>
Revenue = 55s + 85(2/3)s
Cost = 45s + 65(2/3)s + 11,900
Revenue = Cost
- 55s + 85(2/3)s - 45s - 65(2/3)s - 11,900 = 0
Multiply the equation by 3, to eliminate the denominators:
- 165s + 170s - 135s - 130s - 35,700 = 0
Add like terms and add 35,700 to both sides
Divide by 70
Substitue s in d = (2/3)s
Therefore, Funtime must sell 510 standard quadcopters and 340 deluxe quadcopters every month to breakeven.
<u>B. To earn $7,700</u>
Profit = revenue - cost
- 7,700 = 55s + 85(2/3)s - 45s - 65(2/3)s - 11,900
Add 11,900 to both sides
- 19,600 = 55s + 85(2/3)s - 45s - 65(2/3)s
Mutliply the equation by 3:
- 58,800 = 165s + 170s - 135s - 130s
Do the operations:
d = (2/3)840 = 560
Hence, Funtime must sell 840 standard quadcopters and 560 deluxe quadcopters to earn $ 7,700 monthly.
