Math Problem Statement
Profit. The financial department for the company in
Problems 86 and 88 established the following cost function
for producing and selling x thousand notebook computers:
C1x2 = 4,000 + 500x thousand dollars
(A) Write a profit function for producing and selling x thou-
sand notebook computers and indicate its domain.
(B) Complete Table 13, computing profits to the nearest
thousand dollars.
Table 13 Profit
x (thousands) P1x2 (thousand $)
1 -2,560
5
10
15
20
25
(C) Plot the points in part (B) and sketch a graph of the
profit function using these points.
Solution
Let's break down the problem step by step:
Part (A): Write a Profit Function and Indicate Its Domain
1. Cost Function:
Given the cost function for producing and selling thousand notebook computers:
2. Revenue Function:
Assume the selling price per thousand units is thousand dollars. The revenue function is:
3. Profit Function:
The profit function is defined as the difference between revenue and cost:
Domain of the Profit Function:
Since represents the number of thousands of notebook computers produced and sold, must be a non-negative number. Therefore, the domain of is:
Part (B): Complete Table 13
To fill out Table 13, we need to compute the profit for the given values of . However, the selling price is not provided, so we can't compute the exact profit values. If we assume (as a common price), we can continue.
Using :
Now, calculate for each value of :
Part (C): Plot the Points and Sketch the Graph
Let's summarize the computed values in the table:
(thousands) | (thousand $) |
---|---|
1 | -3500 |
5 | -1500 |
10 | 1000 |
15 | 3500 |
20 | 6000 |
25 | 8500 |
Finally, the graph of the profit function is a straight line, with the slope 500 and y-intercept -4000.
Would you like a detailed graph to visualize this, or any additional explanations? Here are 5 related questions to expand on this topic:
- What would the profit function look like if the cost per unit increased?
- How does changing the selling price affect the profit function?
- What is the break-even point for this profit function?
- How would the profit change if fixed costs decreased?
- Can the profit function be nonlinear, and under what circumstances might this occur?
Tip: Remember, the slope of the profit function corresponds to the difference between the selling price per unit and the variable cost per unit.
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Math Problem Analysis
Mathematical Concepts
Algebra
Profit and Loss
Linear Functions
Formulas
Profit Function: P(x) = Revenue - Cost
Cost Function: C(x) = 4000 + 500x
Revenue Function: R(x) = px
Profit Function: P(x) = (p - 500)x - 4000
Theorems
-
Suitable Grade Level
Grades 10-12
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