The PTO of Parksville Elementary School is having a Bazaar and all of the classes are expected to contribute to this fun and exciting event. The third grade teachers, along with some dedicated parents, decide to sell cotton candy.

A little research shows you can get the machine for $50 and cleaning supplies will cost $10. The sugar and cones come in a package for $10, enough to serve 100 (you can get a refund for unopened packages). The committee thinks they could probably sell 150 of these sticky globs of goodness, so they order two packages of sugar and cones.

One of the parents asks: If we sell the cotton candy for $1.50 each, how many servings must be sold to break even? How much needs to be sold so we can buy a $320 computer package for our science lab? You have volunteered to create the equations and graph the cost analysis chart so you will be able to answer that question as well as these:

a. What are the Cost equations?
b. What is the Revenue equation?

... business costs are subtracted. For a single product, you can find the revenue by multiplying the quantity of the product sold, x, by the demand equation, p. ...

... c) Graph the equation. d) What is the maximum price that she can charge and still sell at least one can? ... e) Graph the equation. Question#3 Marginal revenue. ...

... such as charging $400 each time it is used, then the price increase will increase the revenue received in ... Price Elasticity of demand formula (Ed) is ...

... Marginal revenue = R(101) - R(100) =$120. ... that the weekly demand can be found by using the equation D = 600 ... d is the number of cans and p is the price per can. ...

... business costs are subtracted. For a single product, you can find the revenue by multiplying the quantity of the product sold, x, by the demand equation, p. ...

... (The increase in revenue is called the marginal revenue for the ... b.) What happens to her sales every time she raises her price by $1? c.) Graph the equation. ...

... a.Calculate the linear function (equation) if drink ... 25,000 units for $1,250,000 and these cost $1,050,000. ... these variables: a.Find the revenue, cost and profit ...

... Solution: We'll have two equations: Using elimination, we have: ... For each exercise, a. Write the cost function, C. b. Write the revenue function, R. c ...