Question

John sales model boats from a booth at a local fair. He purchases each model boat from a distributor for five dollars and the local fair chargers him a baby and $80 John cells each model boat for $50. Write a system of equations to represent the situation

Answer 1

Answer and explanation:

Profit from sale of model boats = Sales -costs(costs of goods purchases + expenses or charges by the local fair)

John's profit from the sale of model boats can be represented by the equation:

P= 50x-(5x+80)

Where P is profit from the sale of the model boats and x is number of model boats bought and sold. The 80 is constant as it is a fixed cost paid to the local fair.

For example if John buys and sells 20 model boats, he would make profit of:

Substitute x=20 in equation above

P= 50×20-(5×20+80)

P=1000-180

P=$820

It could be said that John is in a very profitable business and his profit is also dependent on volume of sales because the lower his sales the closer he gets to making a loss and not profit