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Ajay Singh plans to offer gift-wrapping services at the local mall during the month of December. Ajay will wrap each package, regardless of size, in the customer's choice of wrapping paper and bow for a price of $3. Ajay estimates that his variable costs will total $1 per package wrapped and that his fixed costs will total $600 for the month.
Problem 1: Express Ajay's profit before taxes in terms of the number of packages sold.
Problem 2: How many packages does Ajay need to wrap to break even?
Problem 3: How many packages must Ajay wrap to earn a profit of $1,400?
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