Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Need help with c (the break even point) and d (the price range for which the company will make a profit) please
Transcribed Image Text:p($)
558
C(S)
114,000
126,700
162,000
184,000
280
420
394
640
194
710
73
tant term to three decimal places as needed.)
Transcribed Image Text:The table to the right contains price-demand and total cost data for the production of projectors, where p is the wholesale price (in dollars) of a
projector for an annual demand of x projectors and C is the total cost (in dollars) of producing x projectors. Answer the following questions (A) - (D).
(A) Find a quadratic regression equation for the price-demand data, using x as the independent variable.
y = 812.010-872x- 000207x2
(Type an expression using x as the variable. Use integers or decimals for any numbers in the expression. Round the coefficients to seven decimal place
(B) Find a linear regression equation for the cost data, using x as the independent variable.
y= 65065.22 + 159.24x
(Type an expression using x as the variable. Use integers or decimals for any numbers in the expression. Round to two decimal places as needed.)
Use the linear regression equation found in the previous step to estimate the fixed costs and variable costs per projector.
The fixed costs are $ 65065.22.
(Round to the nearest dollar as needed.)
The variable costs are $ 159.24 per projector.
(Round to the nearest dollar as needed.)
(C) Find the break even points.
The break even points are
(Type ordered pairs. Use a comma to separate answers as needed Round to the nearest integer as needed.)
(D) Find the price range for which the company will make a profit.
$spss
(Round to the nearest dollar as needed.)
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Expert Solution
Step 1
| X | Y = 159.24x+65065.22 |
| 280 | 159.24*280+65065.22 = 109652.42 |
| 420 | 159.24*420+65065.22 =131946.02 |
| 640 | 159.24*640+65065.22 =166978.82 |
| 710 | 159.24*710+65065.22 =178125.62 |
Y = 65065.22+159.24x
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