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13 July, 05:31

An electronics company has developed a new hand held device. The company predicts that the start up cost to manufacture the new product will be $125,000, and the cost to make one device will be $6.50. A. If the company plans on selling the device at a wholesale price of $9, write and solve an inequality to determine how many must be sold for the company profit. Show your work. B. The cost of making one device is 10% more than the company predicted. What is the new cost of making one device? How many devices must it now sell at the Same wholesale Price to make profit?

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  1. 13 July, 05:35
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    Profit = revenue - expenses

    expenses : 125,000 + 6.50x

    revenue : 9x

    so to make a profit, ur revenue (income) has to be higher then ur expenses

    revenue > expenses

    A.) 9x > 125,000 + 6.50x

    9x - 6.50x > 125,000

    2.5x > 125,000

    x > 125,000 / 2.5

    x > 50,000 ... so they would have to sell at least 50,001 devices to make a profit <==

    B.) the cost of making 1 device is 10% more then the company predicted ... 10% more then 6.50 ... 6.50 (1.10) = 7.15 ... this is the new cost of making 1 device <==

    9x > 125,000 + 7.15x ... this is the inequality with the 10% more added

    9x - 7.15x > 125,000

    1.85x > 125,000

    x > 125,000 / 1.85

    x > 67,567.5 ... so to make a profit, they would have to sell at least 67,568 devices to make a profit <==
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