213,807 views
24 votes
24 votes
Amanda owns a local cupcake shop. She pays 1,500 each month for rent. It costs her 5.00 to make each batch of cupcakes. She sells each batch for 20.00 How many batches must she sell each month in order to make a profit? write an inequality to model this situation and solve.

User Pedro Barros
by
2.9k points

1 Answer

11 votes
11 votes

Answer: 15x - 1500 > 0, 101 batches

Explanation:

To begin, lets start by modeling this with a linear equation, (for sake of simplicity).

we can model this in the form y = mx + b, where y is 0, (meaning she isn't making profit OR losing money either).

Next, lets set up the parameters:

0 = mx + b. We can safely say that b, our constant, is -1500, because this is the money she "loses" every month.

Now we have 0 = mx -1500. We know she sells each batch for $20, so we also know that she makes 20x dollars for x batches. Our m = 20.

Now we have 0 = 20x - 1500. However, this equation is not completely correct, as we arent subtracting the cost for making each batch of cupcakes. The problem says that it costs her $5 to make each batch. So it will cost her 5x dollars for making x batches. If we subtract this from how much she sells each batch for, we get the profit she makes from selling each batch. So she makes a profit of (20x - 5x) = 15x dollars for x batches of cupcakes.

Out completed equation is 15x - 1500 = 0.

Solving this equation for x will give us how many batches she needs to sell to break even. To model this as an inequality for profit we simply replace the "=" sign with a ">" sign.

So our completed inequality is 15x - 1500 > 0

Solving this for x:

15x - 1500 > 0

15x > 1500

x > 100

Amanda needs to make more than 100 batches per month to make a profit. The greatest number of whole number batches over 100 is 101; so she needs to sell atleast 101 batches to make a profit every month.

User Konrad Nowicki
by
2.7k points