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January 31, 2015

January 31, 2015

Posted by **Amanda** on Sunday, August 11, 2013 at 10:44am.

a. Establish an equation to determine revenue.

b. Establish an equation to determine total cost.

c. How many pizzas must be sold to break even (i.e., you experience neither a profit nor a loss)? Interpret your result.

As a business owner, it is very important to have an understanding of profit and loss. The formula for determining profit is Profit = revenue – cost (P = R – C).

d. Determine the profit if 500 specialty pizzas are sold. Interpret your result.

e. How many specialty pizzas would need to be sold to make a profit of $1,100? Interpret your result.

f. How many specialty pizzas would you need to sell if you wanted to make a profit greater than $1,595? Interpret your result.

- algebra for business -
**Chol**, Sunday, August 11, 2013 at 3:42pm(a) R = 15p

(b) C = 55 + 4p

(c) Revenue [5*15]= $75

Variable cost [5*4]= $20

contribution 55

fixed cost -55

Net profit. 0

(d) 15p = 55 + 4p

11p = 55

p = 5 pizzas break-even

Profit = revenue - cost

15(500)-4(500)-55 = $5445

Sell 500 pizzas $5445

(e) profit = 15p -55-4p

1100 = 11p -55

1155 = 11p

p = 105

Sell 105 pizzas $1100

(f) 1595 = 11p -55

1650 = 11p

p = 150

Sell 150 pizzas make $1595

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