1. Lab 3 - 2
Modeling a Business

2. Objectives Solve a system of two linear equations by any method
Determine the break-even point of a linear system algebraically and graphically
Interpret break-even points in contextual situations

3. Vocabulary
Fixed Costs – Also known as monthly costs; items like rent, insurance, mortgage, and utilities. Things that have to be paid whether your company is producing or not.
Variable Costs – Items like employee wages, raw material costs and possibly additional utilities. Things that are dependent on your company producing things.
Income – primarily made from a company selling what it produces.
Net income – Income – costs, is profit.
Break even point – where costs = income.

4. Modeling a Business
You are employed by a company that manufactures solar collector panels. To remain competitive, the company must consider many variables and make many decisions. Two major concerns involve those variables and decisions affecting the cost of making the product, and those that affect the income from selling the product.
Costs such as rent, insurance, and utilities for the operation of the company are called fixed costs -- because they generally remain constant over a short time period, and they must be paid whether or not any items are manufactured. Other costs, such as materials and labor, are called variable costs because they depend directly upon the number of items produced.

5. Worksheet
Complete the worksheet for a quiz grade

6. Summary and Homework
Summary
none.
Homework
Finish Lab 3-2