Math 117 Apc

730 Words Mar 3rd, 2012 3 Pages
Associate Level Material
Appendix C


Retail companies must keep close track of their operations to maintain profitability. Often, the sales data of each individual product is analyzed separately, which can be used to help set pricing and other sales strategies.

Application Practice

Answer the following questions. Use Equation Editor to write mathematical expressions and equations. First, save this file to your hard drive by selecting Save As from the File menu. Click the white space below each question to maintain proper formatting.

In this problem, we analyze the profit found for sales of decorative tiles. A demand equation (sometimes called a demand curve) shows how much money people would pay for a product
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Let x represent the number of tile sets. If b represents a fixed cost, what value would represent b?

Find the cost equation for the tile. Write your answer in the form C = mx + b.

The profit made from the sale of tiles is found by subtracting the costs from the revenue.

Find the Profit Equation by substituting your equations for R and C in the equation . Simplify the equation. What is the profit made from selling 20 tile sets per month?

What is the profit made from selling 25 tile sets each month?

What is the profit made from selling no tile sets each month? Interpret your answer.

Use trial and error to find the quantity of tile sets per month that yields the highest profit.

How much profit would you earn from the number you found in part i?

What price would you sell the tile sets at to realize this profit? Hint: Use the demand equation from part a.

The break even values for a profit model are the values for which you earn $0 in profit. Use the equation you created in question one to solve P = 0, and find your break even values.

In 2002, Home Depot’s sales amounted to $58,200,000,000. In 2006, its sales were $90,800,000,000.

Write Home Depot’s 2002 sales and 2006 sales in scientific notation.

You can find the percent of growth in Home Depot’s sales from 2002 to 2006 by following these steps:

Find the increase in sales from 2002 to 2006. Find what percent that

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