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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?

Sagot :

Answer:

751 cupcakes must be sold to make a profit

Step-by-step explanation:

From the question we are told that

Annual cost= $1,500 per year plus a cost of $1 per cupcake

Each cup cake sell at $3

Generally the profit off the top of each cupcake is $2

Therefore

  [tex]\frac{1500}{2}=750[/tex]

This implies that 750 cupcakes will be sold to cover the annual cost excluding cupcake cost

Generally

751 cupcakes=$1502

Total Annual cost to make a profit

[tex]1(cost\ of\ each\ cupcake)*751+1500=\$2251[/tex]

Total Annual sale

[tex]3(sale of each cupcake)*751=\$2253[/tex]

Mathematically

[tex]2253\$-2251\$=2\$[/tex]

Therefore

751 cupcakes must be sold to make a profit