Math Problem Statement

The sales of a small company were ​$45 comma 000 in its fourth year of operation and ​$65 comma 000 in its sixth year. Let y represent sales in the xth year of operation. Assume that the data can be approximated by a straight line. ​(a) Find the slope of the sales​ line, and give an equation for the line in the form y equals mx plus b. ​(b) Use your answer from part​ (b) to find out how many years must pass before the sales surpass ​$120 comma 000

Solution

To solve this problem, let's break it down into two parts.

Part (a): Finding the slope of the sales line and the equation of the line

  1. Identify the points:
    We have two points on the line based on the information given:

    • In the fourth year: (x1,y1)=(4,45000)(x_1, y_1) = (4, 45000)
    • In the sixth year: (x2,y2)=(6,65000)(x_2, y_2) = (6, 65000)
  2. Calculate the slope mm:
    The slope of a line is calculated using the formula: m=y2y1x2x1m = \frac{y_2 - y_1}{x_2 - x_1} Substituting the values: m=650004500064=200002=10000m = \frac{65000 - 45000}{6 - 4} = \frac{20000}{2} = 10000 So, the slope mm is 1000010000.

  3. Find the equation of the line:
    The general form of the equation of a line is: y=mx+by = mx + b We can use one of the points to solve for bb (the y-intercept). Using the point (4,45000)(4, 45000) and substituting m=10000m = 10000: 45000=10000(4)+b45000 = 10000(4) + b 45000=40000+b45000 = 40000 + b b=4500040000=5000b = 45000 - 40000 = 5000 Therefore, the equation of the sales line is: y=10000x+5000y = 10000x + 5000

Part (b): Finding the number of years until sales surpass $120,000

We need to find xx when y=120000y = 120000. Using the equation we derived:

120000=10000x+5000120000 = 10000x + 5000

Subtract 5000 from both sides:

115000=10000x115000 = 10000x

Divide both sides by 10000:

x=11500010000=11.5x = \frac{115000}{10000} = 11.5

So, the sales will surpass $120,000 after approximately 11.5 years. Since we're dealing with years, we round up to the next whole number, so it will take 12 years for the sales to surpass $120,000.

Summary:

  • The equation of the sales line is y=10000x+5000y = 10000x + 5000.
  • The sales will surpass $120,000 in the 12th year of operation.

Do you want more details or have any questions? Here are some related questions:

  1. How would the equation change if the sales in the sixth year were $75,000?
  2. What would be the sales in the 10th year according to this model?
  3. How would you interpret the y-intercept in this context?
  4. What does the slope of the line represent in terms of the company's sales?
  5. How would you graph this line on a coordinate plane?

Tip: Always check if the data can reasonably be modeled by a linear equation before applying linear models.

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Math Problem Analysis

Mathematical Concepts

Linear Equations
Slope
Y-intercept

Formulas

Slope formula
Linear equation form: y = mx + b

Theorems

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Suitable Grade Level

Grades 9-12