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But if you understand those kinds of problems, you can apply your math understanding to real-world problems too. For example, on Friday I developed this strange brain teaser. The math is easy, let's see if you can do it:
Suppose you have a music distribution co-operative where new artists are charged $500 as a one-time lifetime fee for being a part of it.
Suppose this co-operative realizes this model is wrong for most artists, and wants to change it to a monthly membership fee.
Under the old system, 20 artists per month sign up at $500 one-time fee, bringing in $10000 per month. The operation needs this $10000 per month to survive. Under the new system, artists will be charged $29.95 per month. Assuming the new plan brings in 35 artists per month:
A) How many months will it be before it turns a profit?
B) How much cash will the operation lose before it turns a profit?
Now the extra credit.
Most artists have two CDs to distribute, which requires no small amount of work to put into the system. Some artists have 10, which is a burden. Suppose that each artist is charged $50 one time per CD to add their CD to the system. Suppose that the average artist has 2.5 CDs. Now how long will it take?
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