Question

A electronic company has developed a new hand held device the company predicts that the start up cost manufacture the new product will be 125,000 and the cost to make one device will be 6.50 if the company plans on selling the devices at a price 9.00 what inequality could you set up to help you determine how many must be sold for the company to make a profit?

Answer 1

If you let x equal the number of devices sold, then you know the revenue from the devices will be:
9x

However, the cost to make the devices will be:
6.5x.

Therefore, the profits will be:
9x-6.5x = 2.5x.

The company must make more than $125,000; thus,

2.5x > 125,000
x > 50,000

The company must sell more than 50,000 units