Kevin makes plans for a business. He will build a portable electronics device and sell it for $45. His fixed costs will be $2,800 for tools, plus $52 for supplies for each device. Explain why Kevin's business will lose money
Well, the supplies to make each device will cost $52. This means each device will cost over $52 to make (including labor and the cost for tools). He would need to sell his device for more than 52 dollars to make a profit because if he sold each device for $45 he would lose at least $7 on each device!
