A store sells water filters for $44 each, retail price . The wholesale cost to s

Question

A store sells water filters for $44 each, retail price . The wholesale cost to stock the filters is $29 each. The fixed cost associated with the acquiring the filters , storing them in inventory , using shelf space , and advertising the filters for sale is $2500.

a. Write a function for the total cost of stocking the filters for sale.

b. Write a function for the total revenue received from selling the filters.

c. Write the system of equations and determine the number of filters that must be sold to break even.

the number of filters that must be sold to break even is ____ (Round up to the nearest whole number)

Explanation / Answer

fixed cost = $ 2500

cost to stock the filters = $ 29 each

let number of filters be x

a) total cost of stocking the filters = 29x + 2500

b) revenue =selling price - cost price = 44x - (29x+2500) = 15x - 2500

c) at break even cost = revenue

hence , equating both functions

29x + 2500 = 15x - 2500

14x = 5000

x = 357.14

therefore, number of filters must be sold at breakeven = 357

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.