Reference no: EM13180430

Your first task is to post your own Key Assignment Outline to the discussion area so that other students are able to review your plan. Discuss what steps you will take to prepare your solutions for each of the 3 parts in IP4. When discussing Part II of IP4 DO NOT post any solutions to the pizza problem that is part of IP4. You should only discuss HOW you will prepare for solving this problem. You can discuss how to create a Revenue and Cost Equation as well as how to compute the Profit equation.

Here is a similar problem if you would like to post an example to work with on this part. Feel free to post solutions to this problem if you wish although it is not required. However, this would be a great way to communicate with each other in your responses.

Possible Example: A shoe company invests $300,000 in equipment to produce a new line of athletic footwear. Each pair of shoes costs $10 to produce and sells for $60.

· Establish an equation to determine revenue.

· Establish an equation to determine total cost.

· How many pairs of shoes must be sold to break even (i.e., you experience neither a profit nor a loss)? Interpret your result.

As a business owner, it is very important to have an understanding of profit and loss. The formula for determining profit is Profit = revenue - cost (P = R - C).

· Show how to create the Profit equation by computing P = R - C.

· Determine the profit or loss if 5000 pairs of shoes are sold. Interpret your result.

· How many pairs of shoes would need to be sold to make a profit of $100,000? Interpret your result.

· How many pairs of shoes would you need to sell if you wanted to make a profit greater than $50000? Interpret your result.