(a) Explanation Given information: The breakeven point for the product can be used to examine the effects of increasing or decreasing the role of fixed costs in the operating structure. The operating leverage is the extent of fixed cost compared with variable cost in the operations by a business. When the operating leverage is greater, the larger the increase in profit as sales rise and larger the increase in loss as sales fall. Higher the breakeven quantity for the product, the greater is the business risk. x is the number of units of a product sold. The price is $ p per unit. The fixed cost for production of the product is $ 10 , 000 . The variable cost is $ 100 per unit. Explanation: The function that gives the total cost C for production is C ( x ) = 10 , 000 + 100 x , where $ 10 , 000 is the fixed cost, $ 100 is the variable cost, and x is the number of units of the product produced. The function that gives the total revenue is R ( x ) = p x , where x is the number of units of the product sold, and p is the price per item (b) To determine The type of the function x = 10 , 000 ( p − 100 ) in part (a) (c) To determine The domain of the function x = 10 , 000 ( p − 100 ) . (d) To determine The domain of the function x = 10 , 000 ( p − 100 ) , in the context of this application.

WebAssign Printed Access Card for Harshbarger/Reynolds' Mathematical Applications for the Management, Life, and Social Sciences, 12th Edition, Multi-Term

12th Edition

ISBN: 9781337630542

Author: Ronald J. Harshbarger, James J. Reynolds

Publisher: Cengage Learning

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Chapter 2, Problem 4EAGP2

(a)

To determine

The equation that describes x as a function of p, by solving the breakeven equation p x=10,000+100x.

(b)

To determine

The type of the function x=10,000(p−100) in part (a)

(c)

To determine

The domain of the function x=10,000(p−100).

(d)

To determine

The domain of the function x=10,000(p−100), in the context of this application.

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Chapter 2, Problem 3EAGP2

Chapter 2, Problem 5EAGP2

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Chapter 2 Solutions

WebAssign Printed Access Card for Harshbarger/Reynolds' Mathematical Applications for the Management, Life, and Social Sciences, 12th Edition, Multi-Term

Ch. 2.1 - The factoring method for solving a quadratic...Ch. 2.1 - Solve the following equations by factoring. Ch. 2.1 - Prob. 3CP Ch. 2.1 - Prob. 4CP Ch. 2.1 - Prob. 1E Ch. 2.1 - Prob. 2E Ch. 2.1 - Prob. 3E Ch. 2.1 - Prob. 4E Ch. 2.1 - In Problems 5-14, solve each question by...Ch. 2.1 - Prob. 6E

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The equation that describes x as a function of p , by solving the breakeven equation p x = 10 , 000 + 100 x .

Solution Summary: The author explains that the breakeven point for the product can be used to examine the effects of increasing or decreasing the role of fixed costs in the operating structure.

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The equation that describes x as a function of p, by solving the breakeven equation p x=10,000+100x.

The type of the function x=10,000(p−100) in part (a)

The domain of the function x=10,000(p−100).

The domain of the function x=10,000(p−100), in the context of this application.

Want to see the full answer?

Chapter 2 Solutions