Profit ＝ (Price ⋅ Quantity) － (Variable costs ⋅ Quantity)

－Fixed Costs

The C-Sharp Piano Corporation sells pianos for $6,000. Variable costs are $4,100; fixed costs per year are $112,000. How many pianos must C-Sharp sell this year in order to earn a profit of $130,000? (In past years, C-Sharp has had to sell between 100 and 200 pianos to make an acceptable profit. You can use this information as initial guesses.)

Press , then enter the equation:

    

Keys:

 

 

 

 

 

Display:

Description:

 

 

 

 

 

Stores, verifies, and

I

 

 

 

 

 

 

 

creates labels for the

 

 

 

 

 

 

 

equation.

 

 

 

 

 

6000

 



Stores price.

4100

 

 

 

 

 



Stores variable cost,



 

 

112000

 

 

 

 



fixed cost, and profit.



 

 

 

130000





 

 

 

 

The following steps enter guesses for QTY. If the Solver must search iteratively to solve for QTY, it will begin by using the estimates 100 and 200.

Keys:

 

Display:

Description:

100

 

 

 

The first guess for QTY.

 





 

 

200

 

 



The second guess for

 



 

 

 

 

QTY.

182 12: The Equation Solver

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