Question

A woman decides to start a small business making monogrammed cocktail napkins. She can set aside $1870 for monthly costs. Fixed costs are $1329.50 per month and variable costs are $3.70 per set of napkins. How many sets of napkins can she afford to make per month?

Answer 1

`\: \huge \tt{\pink{A}{\orange{N}S{\green{W}{\blue{E}{\purple{R}}}}}} \\ \\ \: \: \: \tt \rightarrow {\blue{\fbox{147 \: sets}}} (approx)`

Explanation:

Fixed costs = $ 1329.50 per month

Variable cost are $3.70 per set of napkins

Total cost she set aside = $1870 for monthly costs

Amount left for napkins = Total cost - Fixed Cost

= 1870 - 1329.50

= $540.50

• $540.50 she can spend on napkins

Cost for one set = $3.70

Let set of napkins = x

Total cost for napkins = $540.50

• x × 3.7 = 540.50
• x = 540.50 / 3.70
• x = 146.08 (approx) or 147 sets

Therefore , she can afford to make 147 (approx) sets of napkins per month.