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?

... 0 25,000 50,000 75,000 100,000 Total Revenue FORMULA FORMULA FORMULA FORMULA FORMULA Variable costs FORMULA FORMULA FORMULA FORMULA FORMULA Contribution margin ...

... Units 0 25,000 50,000 75,000 Total Revenue FORMULA FORMULA FORMULA FORMULA Variable costs FORMULA FORMULA FORMULA FORMULA Contribution margin FORMULA FORMULA ...

... 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. ...

... (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. ...

... the cost C (the amount of money it costs to operate a business) from the revenue R (the ... Profit can be represented algebraically by the equations: ...

... the prospects for raising $120 million in additional revenue? ... all the given information into the equation and solve ... new quantity sold after the price has been ...

Problem 1 Given y = f(x) = x2 + 2x +3 a) Use the definitional formula given below to find the derivative of ... Problem 3 The revenue and cost functions for ...

... 0.06Q 2 + 0.8Q − 5 Therefore, Marginal Cost MC = dQ. ... This is a quadratic equation, where a = 0.06, b = 0.8, c ... Total Revenue = TR = P*Q = $120*39.46 = $4735.34. ...

...Revenue = Contribution margin ratio (Round to six decimal places) The contribution margin ratio =. Using equation (2.10), Y = (Target Profit + Fixed Cost)/ ...