Question

A local company offers you an opportunity to sell discount cards. You will have to pay the company a one-time setup fee of $320. Each card will cost you $6. How many cards would you have to sell before your average total cost per card falls to $10?

Answer 1

80 cards would have to sold before your average total cost per card falls to $10

Explanation:

To find the number of cards you would have to sell to bring the average total cost per card down to $10, you can use the following formula:

number of cards = setup fee / (average total cost per card - cost per card)

Plugging in the values given in the problem, we get:

number of cards = $320 / ($10 - $6)

Solving this equation gives us:

number of cards = $320 / $4

Dividing 320 by 4 gives us a result of 80, so you would have to sell 80 cards before your average total cost per card falls to $10

Another approach is setting it up as y = mx+b

$10 = (320 + 6x) / x

Where x is the number of cards that you need to sell.

Solving for x, we get:

$10x = 320 + 6x

4x = 320

x = 80