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?
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
Elementary and Intermediate Algebra: Concepts and Applications (7th Edition)
- 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 6 contracts from the figure last year, when your company charged only $2,100. The costs to Montevideo Productions are estimated as follows. Fixed costs: $150,000 per month Variable costs: $60,000 per contract Express Montevideo Productions' monthly cost as a function of the number q of contracts. C(q) = Express Montevideo Productions' monthly cost as a function of the hourly production charge p. C(p) =arrow_forwardA publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $54,000, and variable costs (printing, paper, binding, shipping) at $2.90 for each book produced. With this pricing, 5935 books need to be produced and sold at $12.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $3.40 for each book produced. Use this infomation to complete parts a. through c. a. What strategies might the company use to deal with this increase in costs? Choose all that are reasonable. O A. Increase the selling price of the book O B. Find different suppliers to try and lower the variable costs. O C. Increese the font size of the print in the book. O D. Decrease the fixed costs. b. If the company continues to sell books at $12, how many books must they now sell to make a profit? The publisher must produce and sell at least books to make a profit. (Round up to the nearest whole…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