Business Project Quiz Study Guide
Vocabulary
Fixed Cost
Variable Cost
Break-Even
Desired Profit
Break-Even Equation
Desired Profit Equation
Short Answer
What is the difference between a fixed and variable cost?
How would you represent variable cost? How would you represent total
sales? You may answer is terms of your business project.
What does it mean to break-even?
Equations
Solve:
1. 3x + 12 = 5x + 2
2. 11x + 5 = 4x + 54
3. -18 + 5x = -12x – 1
4. 21x + 6 = 17x – 26
Business Problem
1.
Rico Dynamite is considering opening up a business that will sell his
hand-crafted wooden sailboats. Rico has discovered that it will cost
him $5,000 per month for all his fixed cost. With materials and labor,
Rico estimates that it will cost him $50 to make each sailboat. He
also plans on selling his sailboats for $75 each.
a.) How many sailboats must Rico sell to break-even? (Hint: Use the
Break-Even Equation)
b.)How many sailboats must Rico sell to make a desired profit of $2,000?
(Hint: Use the Desired Profit Equation.)