Word Problem

Question

Tedco produces a teddy bear that sells for $24. Each teddy bear costs the company $8 to manufacture and there is an initial start-up cost of $7200. If they want to make an annual pro t of $54 000, how many teddy bears do they need to sell?

Answer 1

Hi Emily,

So Tedco sells each bear for $24, which only costs the company $8 to make each one, but the start-up cost of have a company, paying employees, a factory and office is $7200. So that much is invested at the get up. Now to make a profit (P) for the year (annual) of $54,000, we need Profit (P) to equal the selling price (S) minus the manufacture cost (M) minus the initial cost (I).

So P = S - M - I, where our intended profit (P) = 54,000, S = $24 x #of bears (b) or 24b, M = $8 x #of bears (b) or 8b, and I = 7200

Now fill in for our equation P = S - M - I --> 54,000 = 24b - 8b - 7200

--> 54,000 = 16b - 7200, add 7200 to both sides to isolate our variable b: 54,000 + 7200 = 16b - 7200 + 7200 --> 61200 = 16b

Now divide both sides by 16 to get b alone; 16b/16 = 61200/16

--> b = 3825... so it will take 3825 bears sold to make that exact profit

I Hope that that was helpful!

Best,

Clyde W.

https://www.wyzant.com/Tutors/Biology_Prof