Spirit for You and Go Team , are interested in providing foam fingers. the cheerleaders plan to sell 100 foam fingers.which company should they choose?

Question

Spirit for You : design fee : $35 cost per item 2.50

Go Team : design fee :$20 cost per item $3 

 

Answer 1

 

We can construct a system of equations.

   

    Let x = number of foam fingers produced

 

SPIRIT FOR YOU: (cost function)

 

     R(x) =2.50x + 35

 

     The revenue for selling 100 foam fingers is

 

     R(100) = 2.50(100) + 35

                 = 250 + 35

                 = 285

 

GO TEAM: (revenue function)

 

      R(x) = 3x + 20

 

      The revenue for selling 100 foam fingers is

 

      R(100) = 3(100) + 20

                  = 300 + 20

                  = 320

 

They should use "GO TEAM" because it results in taking in more money for the items sold.