The problem is as follows:
In an electronics factory, the owner calculates that the cost to
produce his new model of portable TV is 26 dollars. After meeting
with the distributors, he agrees the sale price for his new product to
be 25 dollars each and additionally 8% more for each TV set sold
after 8000 units. What is the least number of TV's he has to sell in
order to make a profit?.
The answers are:
- 16000
- 15001
- 16001
- 15999
- 17121
This problem has made me to go in circles on how to express it in a mathematical expression. I'm not sure if it does need to use of inequations.
What I tried to far is to think this way:
The first scenario is what if what he sells is 8000 units, then this would become into:
production cost:26$unit×8000units=208000$
sales:25$unit×8000units=200000$
Therefore there will be an offset of 8000$ as
208000$−200000$=8000$
So I thought what If I consider the second part of the problem which it says that he will receive an additional of 8% after 8000 units.
Therefore his new sale price will be 27$ because:
25+8100(25)=27$
So from this I thought that this can be used in the previous two relations.
But how?.
I tried to establish this inequation:
26(8000+x)<25(8000)+27(8000+x)
But that's where I'm stuck at since it is not possible to obtain a reasonable result from this as one side will be negative and the other positive.
The logic I used was to add up 8000$ plus something which is the production cost must be less than what has been obtained from selling the first 8000 units plus a quantity to be added to those 8000.
However there seems to be an error in this approach. Can somebody help me to find the right way to solve this problem?
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