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Real-Life Math -- Solution

You're starting to get into production creating a new stuffed animal that you have invented. You think it might be a popular item for sale during the next holiday season. This is how much it will cost you to get started with production of 150 Snazoos:

Materials = $6 x 150
Materials = $900

Packaging = $2 x 150
Packaging = $300

Marketing and promotional material = $4 x 150
Marketing and promotional material = $600

Shipping = $2 x 150
Shipping = $300

Total costs = $900 + $300 + $600 + $300
Total costs = $2,100

It will cost you $2,100 to produce the first 150 Snazoos.

If you hope to earn a profit of $7 from each Snazoo, how much will you have to charge customers for each of the stuffed animals?

Cost of 1 Snazoo = $6 + $2 + $4 + $2
Cost of 1 Snazoo = $14

It will cost $14 to produce each Snazoo.

Total price = $14 cost + $7 profit
Total price = $21

You will need to charge $21 for each stuffed animal.


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