Question

Sue makes and sells cupcakes. If she has a cost of $1,500 per year plus a cost of $1 per cupcake, how many cupcakes must she sell in order to make a profit if each cupcake sells for $3?

Answer 1

751 cupcakes

Explanation:

$1,500 + $751 = $2251

It costs $2251 to make 751 cupcakes

If each cupcake sells for $3

751x$3 = $2253

In order to make a profit, she needs to sell 751 cupcakes

Answer 2

To make a profit, Sue must bring in more revenue than she spends. We can represent this relationship with the equation:

(price per cupcake * number of cupcakes sold) - (cost per cupcake * number of cupcakes sold) - fixed costs > 0

We can solve for the number of cupcakes Sue must sell by substituting the known values and solving the equation:

(3 * number of cupcakes sold) - (1 * number of cupcakes sold) - 1500 > 0

2 * number of cupcakes sold - 1500 > 0

2 * number of cupcakes sold > 1500

number of cupcakes sold > 750

Sue must sell more than 750 cupcakes in order to make a profit.