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4 November, 17:45

He purchased $12.00 worth of lemons and $4.00 worth of glasses to make the lemonade.

He adds $0.02 worth of sugar to each glass of lemonade.

He sells each glass of lemonade for $0.25.

What is the minimum number of glasses of lemonade that Michael needs to sell to begin to make a profit?

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  1. 4 November, 18:08
    0
    The minimum number of glasses of lemonade is 70

    Step-by-step explanation:

    Equations

    With the data provided, we can build a model for the profit that Michael gets for selling lemonade.

    First, we set up the cost function. He purchased $12 in lemons and $4 in glasses. It makes a fixed cost of $16. He also spends $0.02 per glass of lemonade fot the sugar. Being x the number of glasses of lemonade Michael sells, the total cost is modeled by

    C (x) = 16+0.02x

    The revenue for selling x glasses of lemonade is

    R (x) = 0.25x

    The profit is

    P (x) = R (x) - C (x) = 0.25x - (16+0.02x)

    P (x) = 0.23x-16

    To make profits:

    0.23x-16>0

    Solving for x

    x>16/0.23

    x>69.6

    Since x must be an integer

    The minimum number of glasses of lemonade is 70
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