Business Case No. IIQuadratic equations are sometimes used to model situations and relationships in business,science and medicine. A common use business is to maximize profit, that is, thedifference between the total revenue (money taken in) and the production costs (moneyspent).The relationship between the price of an item and the quantity sold is often linear. In otherwords, e.g., for each $1 increase in price there is a corresponding decrease in quantity sold.(Think about it: if the price of something goes up, do you buy more or less? Hopefully less!)Company - Sensor instrument s.r.o. sells different types of sensors.A relationship between the selling price of an item and quantity sold is given by the tablebelowSelling Price $ (s)100150200250Quantity Sold inyear (q)100908070Determine a relationship between the selling price of an item and the quantity sold, write theequation. What type of function is that? Plot the function.The amount of profit will be found by taking the total revenue (the quantity sold multiplied bythe selling price) and subtracting the cost to produce the all the items:Profit = Total Revenue - Production Costs.The cost to produce each item is $8.Evaluate at what selling price they make the most money.Write down the profit function (equation) and show a graph of the profit function.Make all the calculations and graphs in excel, the excel sheet is required and it is a part ofyour final grade. A part of the grade is also a short report (A4 word document) that includesmost important graphs, your discussion and conclusions.

- Selling price: The price at which a product or service is offered for sale to customers. It…

Determine a relationship between the selling price of an item and the quantity sold, write the equation. What type of function is that? Plot the function. The amount of profit will be found by taking the total revenue (the quantity sold multiplied by the selling price) and subtracting the cost to produce the all the items: Profit= Total Revenue - Production Costs. The cost to produce each item is $8. Evaluate at what selling price they make the most money. Write down the profit function (equation) and show a graph of the profit function.

Determine a relationship between the selling price of an item and the quantity sold, write the equation. What type of function is that? Plot the function. The amount of profit will be found by taking the total revenue (the quantity sold multiplied by the selling price) and subtracting the cost to produce the all the items: Profit= Total Revenue - Production Costs. The cost to produce each item is $8. Evaluate at what selling price they make the most money. Write down the profit function (equation) and show a graph of the profit function.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable cost of recapping a tire is $9. The company charges $25 to recap a tire. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit. Determine the annual break-even volume for the Retread Tire Company operation. Graphically illustrate the break-even point using a one way table that relates volume to profit.
Number of Consumers Who Try the Product Number of Repeat Customers 10 million 10 million Product Energy bar A Energy bar B In the table above, the profit from repeat customers will equal the cost of the advertisement if there are Profit per Repeat Customer 5 million 1 million $6 6 Profit from Repeat Customers $30 million 6 million Cost of Advertisement $10 million 10 million million repeat customers. (Enter your response rounded to two decimal places.)
A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=70 -0.2D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $700 per month and the variable cost is $40 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? a. The maximum profit per month for this product is $ (Round to the nearest dollar.)
To produce the next popular toy, a company has to pay a factory $250, 000 to set up the production line. They also have to pay $25 per item for the raw materials and labor. Write function for the average cost to produce x items. Then describe what happens to the average cost as the factory produces a large number of toys.
A small business produces and sells balls. The fixed costs are $20 and each ball costs $2.92 to produce. Each ball sells for $7.92. Write the equations for the total cost, C, and the revenue, R, then use the graphing method to determine how many balls must be sold to break even.
Give typing answer with explanation and conclusion
If total revenue is $550 and price per unit is $55 What is the value of output sold?
The profit function for a certain commodity is P(x) - 190x - x - 1000. Find the level of production that yields maximum profit, and find the maximum profit. units P-$ Need Help? Talk to a Tutor Read t Watch it
Give typing answer with explanation and conclusion
Please show the curve on the graph along with the plotted points and answer the two cost amounts at the bottom
The total profit from the sale of q sweatshirts is: P(q) = 5q – 0.005q2 – 450. a. Calculate the additional profit earned when 450 sweatshirts are sold. ________ b. Calculate the additional profit earned when 750 sweatshirts are sold.