An electronics company has developed a new hand-held device. The company predicts that the start-up cost to manufacture the new product will be $125,000, and the cost to make one
device will be $6.50.
a. If the company plans on selling the devices at a price of $9, write and solve an inequality to
determine how many must be sold for the company to make a profit. Show your work.
b. The cost of one device is 10% more than the company predicted. What is the new cost of
making one device? How many devices must they now sell at the same price to make a
profit?
c. Suppose the company wants to start making a profit after selling the same number of
devices you found in part a. What is the lowest the new price can be? Explain how you
found this price.