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Real-Life Math

The largest surfboard club in your area is asking you to design a surfboard specifically for their members. It is an easy design. You have no problem designing and building the 100 surfboards they require.

However, it will take a few weeks to complete the job. That's fine with the organization. But it means you have to include storage costs for the boards until you have all of them complete and can pass them on to their buyers.

Scott Flint is a designer of both surfboards and snowboards. "Quick math, especially fractions and decimals, are key in trying to determine these business costs and absolutely necessary when selling. Offering a buyer a 10 percent discount for large volumes might be costly when trying to store a product for long periods of time."

If you were to sell these boards at a regular price, they would cost $300 each. The surfboard club is expecting a discount. Take into consideration all of the following costs. You want to make at least a 15 percent profit from the sales. Can you offer them a 10 percent discount?

Price of surfboards -- $50 materials + $75 labor per board
Storage for one month -- $800 total
Regular cost of board -- $300

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.