Question

An electronics company has developed a new hand held device. The company predicts that the start up cost to manufacture the new product will be $125,000, and the cost to make one device will be $6.50. A. If the company plans on selling the device at a wholesale price of $9, write and solve an inequality to determine how many must be sold for the company profit. Show your work. B. The cost of making one device is 10% more than the company predicted. What is the new cost of making one device? How many devices must it now sell at the Same wholesale Price to make profit?

Answer 1

Profit = revenue - expenses

expenses : 125,000 + 6.50x
revenue : 9x
so to make a profit, ur revenue (income) has to be higher then ur expenses

revenue > expenses
A. ) 9x > 125,000 + 6.50x
9x - 6.50x > 125,000
2.5x > 125,000
x > 125,000 / 2.5
x > 50,000......so they would have to sell at least 50,001 devices to make a profit <==

B.) the cost of making 1 device is 10% more then the company predicted....10% more then 6.50.....6.50(1.10) = 7.15.....this is the new cost of making 1 device <==

9x > 125,000 + 7.15x ....this is the inequality with the 10% more added
9x - 7.15x > 125,000
1.85x > 125,000
x > 125,000 / 1.85
x > 67,567.5......so to make a profit, they would have to sell at least 67,568 devices to make a profit <==