Question

Jessique sells handbags for $50 each

She spends $4 per handbag for materials
and $1,000 to rent a store each month.
Write an expression that shows how
much profit Jessique will earn in one
month if she sells x handbags.

Answer 1

Material:4x

Sells handbags earn:50x

Rent:1000

=50x-4x-1000=46x-1000

50x - 4x - 1000 = y

46x - 1000 = y

X is number of handbags sold. Y is profit.

the 4x in the first expression is known as a variable cost to the business because that cost varies depending on how much she sells. The $1000 is a fixed cost since it has to be paid whether or not she sells any bags. To see her break even point we use the $46x - 1000 = y equation. Since $46 is the profit per bag, we see how many bags it takes to make $1000 in this equation.

$46x = $1000

x = 21.73

The answer is 22 bags because you cannot sell .73 bags.

This is not factoring tax into consideration though.