Math Is Fun Forum
You are not logged in.
- Topics: Active | Unanswered
Pages: 1
#1 2007-01-31 02:09:52
- jxharmon
- Member
- Registered: 2007-01-08
- Posts: 104
HELP please....Business & Finance
An inventor of a new product believes that the cost of producing the product is given by the function C(x) = 1.75x + 7000.
If the inventor charges $4 per unit, then her profit for producing and selling x units is given by the function P(x) = 2.25x - 7000
a) What is her profit if she sells 2000 units?
b) What is her profit if she sells 5000 units?
c) What is the break-even point for sales?
How do I work a,b, and c?
Offline
#2 2007-01-31 02:26:27
- George,Y
- Member
- Registered: 2006-03-12
- Posts: 1,379
Re: HELP please....Business & Finance
Since the function of profit is given as P(x), what you need to do are only evaluate it in corresponding points and solve x when P(x)=0.
X'(y-Xβ)=0
Offline
#3 2007-01-31 04:03:16
- jxharmon
- Member
- Registered: 2007-01-08
- Posts: 104
Re: HELP please....Business & Finance
can you do one of a, b, or c for an example...please
Offline
#4 2007-01-31 05:19:50
- mathsyperson
- Moderator
- Registered: 2005-06-22
- Posts: 4,900
Re: HELP please....Business & Finance
As you wish.
For a, she's selling 2000 units, so her profit it given by 2.25*2000 - 7000. This works out to be -2500, so she's making a considerable loss.
b is exactly the same, but you're substituting x = 5000 instead of 2000.
c is slightly different, but not too much harder. There, you just need to solve the equation 2.25x - 7000 = 0.
Why did the vector cross the road?
It wanted to be normal.
Offline
#5 2007-01-31 05:41:23
- jxharmon
- Member
- Registered: 2007-01-08
- Posts: 104
Re: HELP please....Business & Finance
U R Awesome, Thxs!
Offline
#6 2007-02-01 03:56:36
- jxharmon
- Member
- Registered: 2007-01-08
- Posts: 104
Re: HELP please....Business & Finance
OK...can you double check me?
a) -2,500
b) 4,250
c) not sure but here is how I worked it:
2.25x-7000=0
+7000 +7000
2.25x=-7,000/2.25
x= -3,111
Offline
#7 2007-02-01 06:33:37
- mathsyperson
- Moderator
- Registered: 2005-06-22
- Posts: 4,900
Re: HELP please....Business & Finance
You're nearly right. You just need to get rid of that minus sign that crept in there.
Also, the step where you said that 2.25x = 7000/2.25 is wrong.
I know what you meant, but you can't have that 2.25 on both sides at once like that.
Why did the vector cross the road?
It wanted to be normal.
Offline
#8 2007-02-01 08:37:20
- jxharmon
- Member
- Registered: 2007-01-08
- Posts: 104
Re: HELP please....Business & Finance
Got it, thanks.
Offline
Pages: 1