Chapter 2.6, Problem 8CFU

To determine

To find: the number of card that should be sold before making profit.

Answer to Problem 8CFU

More than 1200 cards

Explanation of Solution

  

Given information:

Start up cost =$1500

Cost to produce a card = $0.45

Minimum selling rate of card = $0.45

Calculation:

Let x represents the number of cards that must be sold.

In order to make a profit, the sum of startup cost and cost of production should be greater than the income, i.e. $1500+0.45x<1.70x$

Solve the inequality for x as follows:

  $\begin{array}{l}1500+0.45x<1.70x\\ 1500<1.70x-0.45x\\ 1500<1.25x\\ \frac{1500}{1.25}<x\\ 1200<x\\ \text{or, }x>1200\end{array}$

Thus, the number of cards she should sell is more than 1200.