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A store sells toaster ovens for \(\$46\) each, retail price. The wholesale cost to stock the ovens is \(\$28\) each. The fixed cost associated with acquiring the ovens, storing them in inventory, using shelf space, and advertising the ovens for sale is \(\$2500\).

a. Write a function for the total cost of stocking the ovens for sale.

b. Write a function for the total revenue received from selling the ovens.

c. Write a system of equations and determine the number of ovens that must be sold to break even.

Answer :

Selling price = $46 per toaster

Stocking cost = $28 per toaster
Fixed cost = $2500

a) Let the number of toasters be 'x'
The total cost of stocking for sale = 28x + 2500

b) Let the number of toasters be 'x'
Total revenue received from selling the toasters = 46x

c) Break-even is when the cost of production is equal to profit made
So, we can set up the break-even equation as:
Production cost = Revenue cost
28x + 2500 = 46x
2500 = 46x - 28x
2500 = 18x
x = 138.9 ⇒ Rounded to 139 ovens

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