Question

A tile factory earns money by a flat fee for delivery and a sales price per tile sold. For one customer, the tile factory shipped 10,000 units to a retail store at a rate of $0.25 per tile. The total the tile factory earned from that sale was $3,000. Which of the following equations describes the revenue of the tile factory for this sale in terms of tiles sold?

Answer 1

Our equation will be in this form:

R = pt + d

R is the total revenue (money made)
p is the price per tile
t is the number of tiles sold
d is the delivery charge

This is a y = mx + b equation, I just switched the variables to make it easier to see where they come from. In y = mx + b equations, you know that you have numbers instead of m and b; it's only x and y that remain as variables. In our case, we only want t and R to remain variables (which makes sense, because the money made by the company depends on how many tiles were sold - the price of tiles and the delivery fee are always the same).

Even though we know p from the question, to make this work, we still need to find d. We can use the numbers given in the equation to do this.

R = pt + d
3000 = 0.25(10000) + d
d = 500

Therefore, our general equation for revenue will be: R = 0.25t + 500