![Elementary and Intermediate Algebra](https://www.bartleby.com/isbn_cover_images/9780321848741/9780321848741_largeCoverImage.gif)
Concept explainers
Use a graphing calculator to solve
Computer Production. Brushstroke Computer, Inc., is planning a new line of computers, each of which will sell for $970. The fixed costs in setting up production are $1,235,580, and the variable costs for each computer are $697.
What is the break-even point?
The marketing department at Brushstroke is not sure that $970 is the best price. Their demand function for the new computers is given by
To the nearest dollar, what price [would result in equilibrium between supply and demand?
If the Computer are sold for the equilibrium price found in part (b), what is the breakeven point?
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 8 Solutions
Elementary and Intermediate Algebra
- At the Pizza Dude restaurant, a 12-in. pizza costs 5.40 to make, and the manager wants to make at least 4.80 from the sale of each pizza. If the pizza will be sold by the slice and each pizza is cut into 6 pieces, what is the minimum charge per slice?arrow_forwardThe fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are 60% of the annual revenue. If annual revenue is $300,000, determine the annual profit (loss).arrow_forwardhelp meearrow_forward
- As Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,700. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 13 contracts. This is down 5 contracts from the figure last year, when your company charged only $2,200 On average, Montevideo bills for 40 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour. Express Montevideo Productions' monthly profit as a function of the hourly development fee p. P(p) = Find the price it should charge to maximize the profit (in dollars per hour). p = $arrow_forwardA vendor charges $43 for a jacket. What is the demand function?arrow_forwardA store purchased an item for $25 and planned to sell it for $43.75 so that their profit would be 45% of their cost. If they were unable to sell it for this amount, what minimum selling price would allow them to break even?arrow_forward
- The Metropolitan Company sells its latest product at a unit price of $8. Variable costs are estimated to be 40% of the total revenue, while fixed costs amount to $7,800 per month. How many units should the company sell per month to break even, assuming that it can sell up to 5,000 units per month at the planned price? unitsarrow_forwardAs Sales Manager for Montevideo Productions, Inc., you are planning to review the prices you charge clients for television advertisement development. You currently charge each client an hourly development fee of $2,600. With this pricing structure, the demand, measured by the number of contracts Montevideo signs per month, is 24 contracts. This is down 3contracts from the figure last year, when your company charged only $2,300. (a) Construct a linear demand equation giving the number of contracts q as a function of the hourly fee p Montevideo charges for development. q(p) = (b) On average, Montevideo bills for 50 hours of production time on each contract. Give a formula for the total revenue obtained by charging $p per hour. R(p) = (c) The costs to Montevideo Productions are estimated as follows: Fixed costs: $140,000 per month Variable costs: $70,000 per contract Express Montevideo Productions' monthly cost as a function of the number q of…arrow_forwardCharles's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Charles produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Charles faces. As you can see, to sell the additional engine, Charles must lower his price from $105,000 to $90,000 per fire engine. Note that while Charles gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. NOTE: options to blanks are Charles _______(should or should not) increase production from 4 to 5 fire engines because the ______(price effect or output effect) dominates in this scenario.arrow_forward
- Johnson, Ltd. produces a desk lamp. Fixed costs are $280,000. The variable cost per unit is $17, and the selling price per unit is $35. Determine the sales dollars required for them to make a profit of $50,000.arrow_forwardA supplier of souvenir jackets charges street vendors for each order based on a set up fee of $28 and an item charge of $3.4 per jacket. What is the cost function for the vendor?arrow_forwardWhat level of output would generate a profit of $15,000 if a product sells for $24.99, has unit variable costs of $9.99, and total fixed costs of $55,005?arrow_forward
- Elementary Geometry For College Students, 7eGeometryISBN:9781337614085Author:Alexander, Daniel C.; Koeberlein, Geralyn M.Publisher:Cengage,Trigonometry (MindTap Course List)TrigonometryISBN:9781337278461Author:Ron LarsonPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337614085/9781337614085_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781938168383/9781938168383_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337278461/9781337278461_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337282291/9781337282291_smallCoverImage.gif)