George want to start a business manufacturing his latest invention, widgets. It costs $30,000 in lawyer fees(initial cost) to patent his invention and $5,000 for a license to manufacture products in Newport Beach(initial cost).

Manufacturing of each widget includes the following costs: $70 for materials(manufacturing costs), and $30 for manufacturing labor(manufacturing costs). George must also pay his salesman 10% of the purchase price as a commission for each widget sold(sales costs). George is able to sell the widgets to consumers for $2,000 each.

1)Write the formula that describes George's PROFIT(P) as a function of the number of widgets sold(N)

2)Create a graph that describes the function that includes his break even point.

3)Use the graph to determine how many widgets he must sell in order to break even.

4)If George sells 50 widgets per month(starting the first month he is open for business), how many days will it take for him to make 1,000,000 in profit? Show your work.

5)State whether you think it is a good investment for George's money. You must then explain/defend your opinion.

6)What is the simple rate of return on George's investment(initial costs) after 1 year? Show your work.

*Profit+(sales price per widget-total manufacturing costs per widget)*(# of widgets sold)-(initial costs)

*Round # of widgets to the nearest whole number.

*Assume 30 days in a month

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