It costs Atlas Bookbinders about $50,000 to prepare for production the new edition of their popular Business Math textbook. This includes the payment to the authors and editors, the costs of setting the presses, adding the book to their catalog, and designing the book’s cover. These are one-time "fixed" costs that are incurred, even if only one copy of the textbook is printed. Materials, marketing, pressing and binding cost a total of about $40.00 for each book. These are called "variable" costs because the total depends on the number of units that will be produced. Any number of books can be produced at that price. Copies of the book are sold to campus bookstores for $100 each. The total demand for this book is not known exactly, but some estimates are available. How many books should Atlas make in its first production run to start seeing profits? Write down the Cost function Write down the Revenue function
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
It costs Atlas Bookbinders about $50,000 to prepare for production the new edition of their popular Business Math textbook. This includes the payment to the authors and editors, the costs of setting the presses, adding the book to their catalog, and designing the book’s cover. These are one-time "fixed" costs that are incurred, even if only one copy of the textbook is printed. Materials, marketing, pressing and binding cost a total of about $40.00 for each book. These are called "variable" costs because the total depends on the number of units that will be produced. Any number of books can be produced at that price. Copies of the book are sold to campus bookstores for $100 each. The total demand for this book is not known exactly, but some estimates are available.
- How many books should Atlas make in its first production run to start seeing profits?
- Write down the Cost function
- Write down the Revenue function
- Calculate the coordinates of the Break-even Point
- Get two tables of values with at least 3 points each, then graph them in a
coordinates system. Show the BE point, and name the lines appropriately. Your graph must show two lines crossing at the BE point. Show each coordinate pair used to graph the line.
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