company predicts that the start up cost to manufacture the new product will be 125000 and the cost to make one device will be 6.50

Question

question a. if the company plans on selling the devices at a price of 9, write and solve an inequality to determine how many must be sold to make a profit 

 

Answer 1

 

Hi Swastika,

 

If x represents the number of products to make,

 

the total cost is

 

     C(x) = 6.5·x + 125,000,

 

and the revenue is

 

     R(x) = 9.0·x.

 

In order to make a profit,

 

     R(x) > C(x)

 

     9.0·x > 6.5·x + 125,000

 

     2.5·x > 125,000

 

     x > 50,000

 

In order to make a profit,

the company needs to sell more than 50,000 products.