Business Case No. IIQuadratic equations are sometimes used to model situations and relationships in business,science and medicine. A common use business is to maximize profit, that is, thedifference between the total revenue (money taken in) and the production costs (moneyspent).The relationship between the price of an item and the quantity sold is often linear. In otherwords, e.g., for each $1 increase in price there is a corresponding decrease in quantity sold.(Think about it: if the price of something goes up, do you buy more or less? Hopefully less!)Company - Sensor instrument s.r.o. sells different types of sensors.A relationship between the selling price of an item and quantity sold is given by the tablebelowSelling Price $ (s)100150200250Quantity Sold inyear (q)100908070Determine a relationship between the selling price of an item and the quantity sold, write theequation. What type of function is that? Plot the function.The amount of profit will be found by taking the total revenue (the quantity sold multiplied bythe selling price) and subtracting the cost to produce the all the items:Profit = Total Revenue - Production Costs.The cost to produce each item is $8.Evaluate at what selling price they make the most money.Write down the profit function (equation) and show a graph of the profit function.Make all the calculations and graphs in excel, the excel sheet is required and it is a part ofyour final grade. A part of the grade is also a short report (A4 word document) that includesmost important graphs, your discussion and conclusions.

- Selling price: The price at which a product or service is offered for sale to customers. It…

Determine a relationship between the selling price of an item and the quantity sold, write the equation. What type of function is that? Plot the function. The amount of profit will be found by taking the total revenue (the quantity sold multiplied by the selling price) and subtracting the cost to produce the all the items: Profit= Total Revenue - Production Costs. The cost to produce each item is $8. Evaluate at what selling price they make the most money. Write down the profit function (equation) and show a graph of the profit function.

Determine a relationship between the selling price of an item and the quantity sold, write the equation. What type of function is that? Plot the function. The amount of profit will be found by taking the total revenue (the quantity sold multiplied by the selling price) and subtracting the cost to produce the all the items: Profit= Total Revenue - Production Costs. The cost to produce each item is $8. Evaluate at what selling price they make the most money. Write down the profit function (equation) and show a graph of the profit function.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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