
Concept explainers
a.
To find: The model for average cost of producing one hat as a function of
The model for average cost of producing one hat as a function of
Given:
The total number of hats manufactured per week is
Concept used:
Total cost is the sum of variable cost and fixed cost (overhead cost in this case). Average cost can be determined by dividing the total cost by number of hats.
Calculation:
Let the number of hats produced each week be
Calculate the total cost of producing the hats.
Calculate the average cost function.
Conclusion: The model for average cost of producing one hat as a function of
b.
To find: The number of hats that must be sold in order to make a profit.
The number of hats that must be solved in order to make a profit is equal to 4762.
Given:
The selling price of one hat is
Concept used:
Total cost must be equal to the revenue obtained by selling
Calculation:
Equate the total cost to revenue.
Conclusion: 4762 hats must be sold in order to make a profit.
c.
To find: The number of hats that must be sold in order to make a profit of $1000.
The number of hats that must be solved in order to make a profit of $1000 is equal to 6350.
Given:
The selling price of one hat is
Concept used:
Profit is calculated by subtracting the cost price from the selling price.
Calculation:
Calculate profit by subtracting selling price from the total cost and equate it to $1000.
Conclusion: 6350 hats must be sold in order to earn a profit of $1000.
Chapter 2 Solutions
EBK PRECALCULUS:GRAPHICAL,...-NASTA ED.
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