Concept explainers
Cost Function The simplest cost function is the linear cost function, , where the represents the fixed costs of operating a business and the slope represents the cost of each item produced. Suppose that a small bicycle manufacturer has daily fixed costs of , and each bicycle costs to manufacture.
a. Write a linear model that expresses the cost of manufacturing bicycles in a day.
b. Graph the model.
c. What is the cost of manufacturing 14 bicycles in a day?
d. How many bicycles could be manufactured for ?
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
Precalculus Enhanced with Graphing Utilities (7th Edition)
Additional Math Textbook Solutions
Basic Business Statistics, Student Value Edition
A First Course in Probability (10th Edition)
University Calculus: Early Transcendentals (4th Edition)
Elementary Statistics (13th Edition)
- Sales Barnes & Noble had annual sales of $6.8 billion in 2013 and $6.1 billion in 2015. Use the Midpoint Formula to estimate the sales in 2014. Assume that the annual sales followed a linear pattern.arrow_forwardMonthly Salary A pharmaceutical salesperson receives a monthly salary of $5000 plus a commission of 7 of sales. Write a linear equation for the salesperson’s monthly wage W in terms of monthly sales S.arrow_forwardAn outpatient operating room charges each patient a fixed amount per surgery plus an amount per minute for use. One patient was charged 250 for a 30-minute surgery and another patient was charged 450 for a 90-minute surgery. Determine the linear function that would be used to compute the charges. Use the function to determine the charge when a patient has a 45-minute surgery.arrow_forward
- If we rent a truck and pay a $75/day fee plus $.20 for every mile we travel, write a linear equation that would express the total cost y, using x to represent the number of miles we travel. Graph this function on your graphing calculator and find the total cost for one day if we travel 70 mi.arrow_forwardThe manufacturer of a weight training bench spends $120 to build each bench and sells them for $170. The manufacturer also has fixed costs each month of $150,000. (a) Find the cost function C when x benches are manufactured. (b) Find the revenue function R when x benches are sold. (c) Show the break-even point by graphing both the Revenue and Cost functions on the same grid. (d) Find the break-even point. Interpret what the break-even point means.arrow_forwardA company sells doughnuts. They incur a fixed cost of $25,000 for rent, insurance, and other expenses. It costs $0.25to produce each doughnut. a. Write a linear model to represent the cost C of the company as a function of x, the number of doughnuts produced. b. Find and interpret the y-intercept.arrow_forward
- Describe what it means if there is a model breakdown when using a linear model.arrow_forwardIdentify the slope and y-intercept of the line x+4y=8 .arrow_forwardCost, Revenue, and Profit A roofing contractor purchases a shingle delivery truck with a shingle elevator for 42,000. The vehicle requires an average expenditure of 9.50 per hour for fuel and maintenance, and the operator is paid 11.50 per hour. (a) Write a linear equation giving the total cost C of operating this equipment for t hours. (Include the purchase cost of the equipment.) (b) Assuming that customers are charged 45 per hour of machine use, write an equation for the revenue R obtained from t hours of use. (c) Use the formula for profit P=RC to write an equation for the profit obtained from t hours of use. (d) Use the result of part (c) to find the break-even point-that is, the number of hours this equipment must be used to yield a profit of 0 dollars.arrow_forward
- Intermediate AlgebraAlgebraISBN:9781285195728Author:Jerome E. Kaufmann, Karen L. SchwittersPublisher:Cengage LearningCollege AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
- Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningGlencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill