Solution for Problem 1.2.2

A school wants to sell calculators for a fundraiser. The school pays $25 dollars for each calculator and they can sell them for 40% more than the purchase price. How much revenue would the school make if they sold 50 calculators? 350 calculators?

Quantities

Step

School Cost per Unit = 25

Mark up per Unit = .4 × 25 = 10
Student Price = 25 + 10 = 35 ($35)

Let x = Number of Calculators
Let R = Revenue R = 35x 

R = 35x  

Identify the known quantities.

 

Identify the unknown quantities.

 

Create a model (or equation)

Use the Formula

For 50 units, let x = 50.
R = 35(50) 
R =  $1,750

For 350 units, let x = 350.
R = 35(350) 
R =  $12,250
Note:  Revenue is not the amount of profit.  It is the amount of money made before paying costs.