In Device Fix, we will fix and repair cell phones and tablets. All parts required to be replaced on the fix will be verified for purchase my the customer and will be added to their bill.
Business Plan: Restricions
In this business we will only be able to fix 10 to 20 devices per day with supplies in stock. Some supplies will need to be ordered. This will limit the repair speed to about 10 devices fixed in 1 day. I can't spend more than $50 per day. In the startup I have $10,000 and I cant use more than 60% on one product. I know that tablets wont be needed to be repaired as often, so there would be a max of 5 each day. The business will not be open on weekends (Sat. & Sun.)
Business Plan: Cost & Selling Prices
Each device to repair will cost ~$4 per cell phone and ~$5 per tablet. I will charge $15 per cell phone and $20 per tablet as a base fee for repairs and they will cover the cost of the parts needed to repair the device.
- My profit will be the money made minus the money spent.
- x = # of cell phones; y = # of tablets;
- Cost = $4x + $5y
- Sell = $15x + $20y
- Profit = Sell - Cost
- P = (15x + 20y) - (4x + 5y) OR 11x + 15y
Restrictions: Systems of Inequalities
- x = # of cell phones repaired; y = # of tablets repaired per day.
- x ≥ 0, x ≤ 10
- y ≥ 0, y ≤ 5
- 4x + 5y ≤ 50
- 4x ≤ 6000
- 5x ≤ 6000
- Profit = 11x + 15y
- 0,5; 11(0)+15(5)=75
- 6, 5; 11(6)+15(5)=141
- 10,2; 11(10)+15(2)=140
- 10,0; 11(10)+15(0)=110
- I would maximize my profit if I repaired 6 Cell Phones and 5 Tablets per day.