Question

elevator pitch – math

1. who can invest more?

two people want to invest money. lets see who can invest more.
investor a – 12,000,000 & they will invest 2% of their money.
investor b – 1,000,000 & they will invest 30% of their money.

1. how many apps to sell?

a company makes an app. they need to pay 4 coders for 2 years. each coder costs $100,000 per year. the app sells for 0.25 cents each.
how many apps do they need to sell to pay for the coders?
cost for coders : # of coders x cost per year = ____ x 2 years = ____
step 2: divide by price per app ______

1. what is the company worth?

an entrepreneur wants to sell $\frac{1}{3}$ of her company for 500,000.
$\frac{1}{3}$ of company price x 3 ______.

1. break-even point

a business owner needs to know: how many products must i sell to cover my costs?
each product makes a profit of $45.00. fixes costs like rent and utilities equal 50,000.
how many products break even? (round to nearest whole #) ______

1. lost revenue from discount

angel planned to sell 10,000 products to walmart for $45.00 each. but walmart negotiated a 20% discount.
how much did angel lose? ______
original revenue ____ discount amount: ____

1. market share projection

youre pitching your business. you say youll capture 30% of a 1.3 billion market in 2 years.
what would your year 2 revenue be? ______

Explanation:

Step1: Calculate Investor A's investment

$12,000,000 \times 0.02 = \$240,000$

Step2: Calculate Investor B's investment

$1,000,000 \times 0.30 = \$300,000$

Step3: Compare the two investments

$\$300,000 > \$240,000$, so Investor B can invest more.

Step4: Calculate annual coder cost

$4 \times \$100,000 = \$400,000$

Step5: Calculate total 2-year coder cost

$\$400,000 \times 2 = \$800,000$

Step6: Calculate number of apps to sell

$\frac{\$800,000}{\$0.25} = 3,200,000$

Step7: Calculate full company value

$\$500,000 \times 3 = \$1,500,000$

Step8: Calculate break-even product count

$\frac{\$50,000}{\$45} \approx 1111$ (rounded to nearest whole number)

Step9: Calculate original total revenue

$10,000 \times \$45 = \$450,000$

Step10: Calculate discounted price per unit

$\$45 \times (1 - 0.20) = \$36$

Step11: Calculate discounted total revenue

$10,000 \times \$36 = \$360,000$

Step12: Calculate lost revenue

$\$450,000 - \$360,000 = \$90,000$

Step13: Calculate projected revenue

$1.3 \times 10^9 \times 0.30 = \$390,000,000$

Answer:

1. Investor B can invest more (Investor A: $\$240,000$; Investor B: $\$300,000$)
2. 3,200,000 apps
3. $\$1,500,000$
4. 1111 products
5. $\$90,000$ (Original Revenue: $\$450,000$; Discount per unit: $\$9$)
6. $\$390,000,000$