Your firm is considering adding a product line. The accounting department has determined that the cost function for this new product will be C(z) = 3352 +3920 and the revenue function will be R(z) = 370z, where 2 is the number of units sold. Additionally, the sales department has determined that you reasonably can expect to sell around 150 units. You must decide whether to go ahead with the new product line. Find the break-even quantity: Find the profit function: P(x) - Make your decision:
Your firm is considering adding a product line. The accounting department has determined that the cost function for this new product will be C(z) = 3352 +3920 and the revenue function will be R(z) = 370z, where 2 is the number of units sold. Additionally, the sales department has determined that you reasonably can expect to sell around 150 units. You must decide whether to go ahead with the new product line. Find the break-even quantity: Find the profit function: P(x) - Make your decision:
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Your firm is considering adding a product line. The accounting department has determined that the cost
function for this new product will be C(r) = 385a +- 3920 and the revenue function will be
R(a) = 370, where r is the number of units sold. Additionally, the sales department has determined
that you reasonably can expect to sell around 150 units. You must decide whether to go ahead with the new product line.
Transcribed Image Text:Your firm is considering adding a product line. The accounting department has determined that the cost
function for this new product will be C(z) = 335x + 3920 and the revenue function will be
R(z) = 370z, where is the number of units sold. Additionally, the sales department has determined
that you reasonably can expect to sell around 150 units. You must decide whether to go ahead with the
new product line.
Find the break-even quantity:
Find the profit function:
P(x) =
Make your decision:
O Proceed with the product line: the products are profitable and we can reasonably expect to meet
our break-even quantity.
O Cancel the product line: producing these products is not profitable.
O Cancel the product line: the quantity needed to break even is more than our firm can reasonably
expect to sell.
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