u are at the final stages of opening your business but you must also figure out

Question

u are at the final stages of opening your business but you must also figure out what you are projected to make every month. You plan to sell your hats for $15. Yo 5. Write an equation that models the amount of I(x), gross income earned as a function of x, number of hats sold. a. As a business person, you know that it takes money to make money. You determined that from the number of employees you have hired that it will take $2050 each month of start money. You have also determined from how much you pay for your materials that it will cost $8 to make each hat and $1 to ship each hat. b. Write an equation that models the cost of running your company. Where will your company break-even? When will you start making money? In other words how many hats will you need to make in one month? c. d. Revenue is calculated by taking your Gross Income and subtracting the cost of making the product. Write an equation that will predict your revenue for the month given that you sell x, number of hats. You have calculated your projected sales for the first month will be 5000 hats. will you make any money in your first month? e. f.

Explanation / Answer

e) Revenue for the month in which i sell x number of hats is :

R(x) = (x*15)-[2050+(x*8)+(x*1)]

i.e., R(x) = 15x-(2050+8x+x)

i.e., R(x) = 15x-(2050+9x)

i.e., R(x) = 15x-2050-9x

i.e., R(x) = 6x-2050

f) In the first month my projected sales will be 5000 hats.

Then, R(5000) = 6*5000-2050

i.e., R(5000) = 30000-2050

i.e., R(5000) = 27950

Therefore, i have made $27,950 in my first month.

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