# Let "x" represent, let "y" represent. write equation for costs and revenue

• Dec 12th 2012, 04:23 PM
butcshe
Let "x" represent, let "y" represent. write equation for costs and revenue
Hi everyone,

I have a multi part question that I am unsure how to solve. Here it is (sorry it's kind of long):

Lee is starting a cake decorating and baking business. She had to invest \$462 in her business to get started. She pays \$4 per cake for ingredients, and she sells each cake for \$25.

a) Let x represent___________________________
Let y represent___________________________

b) write an equation that represents her costs.

c) write an equation that represents her revenue

d) does Lee make a profit or lose money for
15 cakes? 20 cakes? 25 cakes?

Thanks for any help. It is appreciated
• Dec 12th 2012, 05:12 PM
Deveno
Re: Let "x" represent, let "y" represent. write equation for costs and revenue
a) i suggest you let x represent the number of cakes, and let y represent the profit (or loss) realized as a function of x.

b) what are these? for example, if Lee bakes one cake, that's \$462 to get started, and \$4 for the ingredients, which means Lee is \$466 in the hole, unless she sells the cake.

c) in general: profit = revenue - costs. the profit made (or lost) will depend on the number of cakes. as i showed above, 1 cake has a cost of \$466, if it sells, that is \$25 revenue, defraying the loss to a mere \$441 dollars in the hole.

d) if you do (b) & (c), you should be able to use what i said for (c) to get a formula for profit/loss.
• Dec 12th 2012, 05:18 PM
skeeter
Re: Let "x" represent, let "y" represent. write equation for costs and revenue
Quote:

Originally Posted by butcshe
Hi everyone,

I have a multi part question that I am unsure how to solve. Here it is (sorry it's kind of long):

Lee is starting a cake decorating and baking business. She had to invest \$462 in her business to get started. She pays \$4 per cake for ingredients, and she sells each cake for \$25.

a) Let x represent___number of cakes she makes_
Let y represent___her total costs___________

b) write an equation that represents her costs. y = 462 + 4x

c) write an equation that represents her revenue R = 25x

d) does Lee make a profit or lose money for
15 cakes? 20 cakes? 25 cakes?

you can finish part (d) ...
• Dec 12th 2012, 05:24 PM
butcshe
Re: Let "x" represent, let "y" represent. write equation for costs and revenue
Hey Deveno and Skeeter,

Thanks so much for your help. Things are much clearer now. Much appreciated.
• Dec 12th 2012, 06:03 PM
Deveno
Re: Let "x" represent, let "y" represent. write equation for costs and revenue
what Lee needs to know (as any good businesswoman should) is: when is her profit 0? (this is "the break-even point"). how many cakes does this require she sell?