The graph shows the number of bracelets Kiana needs to sell to make a profit. What can you learn by looking at the graph?
It costs Kiana $100 to start her business.
Kiana begins to make a profit after she has sold more than 5 bracelets.
If Kiana sells 100 bracelets, she makes a profit of $35.
If Kiana sells no bracelets, she loses $75.
From the information provided, we can learn several key points about Kiana’s business and the relationship between the number of bracelets sold and her profit:
1. Fixed Costs: Kiana has an initial cost of $100 to start her business. This is her fixed cost, which she needs to cover before she can start making a profit.
2. Breakeven Point: The graph shows that Kiana begins to make a profit after selling more than 5 bracelets. This means that the revenue generated from selling more than 5 bracelets covers her initial costs and any variable costs associated with making those bracelets.
3. Profit at Scale: When Kiana sells 100 bracelets, she achieves a profit of $35. This suggests that her profit margin increases with the number of bracelets sold, indicating that her pricing strategy or cost management effectively contributes to profitability as sales increase.
4. Loss Scenario: If Kiana sells no bracelets, she incurs a loss of $75, meaning that even without sales, she has costs (likely attributed to fixed costs) that still impact her financial situation.
In summary, the graph illustrates Kiana’s journey in her business, highlighting her fixed costs, the breakeven point, and the progression of her profits as sales increase. Understanding these points can help in making informed decisions about managing costs and pricing for better profitability. If you need further explanations or information, feel free to ask!