Q1. An enterprising college student has decided to purchase a local car wash business. The purchase cost is $150,000. Car washes will be priced at $5.50 and variable cost per car is expected to be $1.5. How many cars must be washed in order to recover the $150,000 purchase price?
Q2. A charitable organization is planning a raffle to raise $10,000. Five hundered chances will be sold on new car. The car will cost the organization $150,000. How much should each ticket cost if the organization wishes to net a profit of $10,000.
Q3. A publisher has a fixed cost of $250,000 associated with the production of college mathematics book. The contribution to profit and fixed cost from the sale of each book is $6.25
(a) Determine the number of books which must be sold in order to break even
(b) What is the expected profit if $50,000 books were sold?