Suppose that your start a business manufacturing and selling luxury bean bag chairs. It will cost $4000 to get your business started. You also calculate that each luxury bean bag chair will cost you $50 to produce
1. write an equation for the total cost to manufacture n luxury bean bag chairs.
you decide to sell the luxury bean bag chairs for 62.50 each (revenue is the total money coming in from sales.)
2. write an equation for the total revenue made from selling n luxury bean bag chairs.
3. solve the system of equations algebraically
Answer:
Step-by-step explanation:
From the given question;
1.
Let assume that c1 to be the cost and n to be the number of bean bags produced.
amount used to start the business = $4000
thus;
The equation for the total cost to manufacture n luxury bean bag chairs is:
c₁ = 50 n + 4000
2.
Let c₂ be the total revenue made from selling ; then since 62.50 revenue is generated from each bag n sold
therefore ;
c₂ = 62.50 n
3.
c₁ = c₂
50 n + 4000 = 62.50 n
4000 = 62.50 n - 50 n
4000 = 12.50 n
n = 4000/12.50
n = 320
We can infer that in order to start making profit from the amount used tot start the business, you must have sold 320 bean bags.
