Algebra I Cost-Revenue Business Project
This project is designed for you to demonstrate your understanding of systems of linear equations. Before starting, read the entire project outline and requirements. During this project you are to do the following: 1) Pair up with a partner and create a business that sells one commodity of your choice (points for creativity). 2) Create a Market Research Survey that will be used to survey 50 students to help you discover what potential customers are looking for in the product your group will create and sell. The survey must include a minimum of three questions. 3) Conduct the survey. 4) Create a list of fixed costs – items and prices. Consider items such as a store, equipment, furniture, advertisement, etc. Use the survey results to revise the fixed cost list if needed. Include the total fixed cost. 5) Create a list of variable costs. With each variable cost include the dollar figure calculated per unit. Once again, use the survey results to revise the variable costs list if needed. Sate the total variable cost. 6) Using the survey results and the total variable cost determine the product price. 7) Write the COST function and the REVENUE function. 8) Solve the system of equations algebraically using the substitution method AND the linear combination method in order to find the break-even point. 9) Create a model of the product. 10) Create a Power Point Presentation that includes the following: • A written introduction including a description of the product. • A picture of the product • The completed Market Research Survey • A written summary of the survey results • A list of the fixed costs and the total • A list of the variable costs and the total • The cost and revenue functions • The algebraic computations of the break-even point • An accurate graphical representation of the cost and revenue functions that shows the break-even point and the regions of loss and profit (label all items) • A written explanation of the...
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