Graphs are used to solve real world problems.

**Example **

A new small business bakes and sells biscuits. The fixed costs of the business are $400. The cost of making each biscuit is $1. The business plans to sell each biscuit at $1.5. Using graphical method find out the following:

- Loss to business if 300 biscuits are sold;
- The exact number of biscuits that the business needs to sell to cover full cost;
- Profit made by the business if 1200 biscuits are sold.

**Solution**

Expenses = Fixed Costs + Cost of Number of Biscuits Made

So total cost* y* for *x* biscuits made is the equation

*y* = 400 + *x* Continue reading “Solving Word Problems Using Graphs”