Profit Function Questions

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Math Questions: Group Project Annual profit in thousands of dollars is given by the function, P(x) = 12x - 100, where x is the number of items sold in thousands, x ? 10. 1.Describe the meaning of the number 12 in the formula The number 12 is the amount of profit per thousands of items. This number applies to each thousand of items without regard to how many thousands of items are produced. It might have to do with materials, labor, or other per-item costs. 2. Describe the meaning of the number -100 in the formula The number 100 in the formula represents the fixed costs that are not dependent upon the number of items produced. It may represent rent, fixed salaries, or other costs that will not vary according to the number of units produced. 3. Find the profit for 5 different values of x Values used: 10, 11,12, 13, 14, 15 P(10) = 12(10) 100 = 20 P(11)= 12(11) 100 = 32 P(12)= 12(12) 100= 44 P(13) = 12(13) 100 = 56 P(14) = 12(14) 100 = 68 4.Graph the profit function over its given domain; use the 5 values calculated in part 3 to construct the graph and connect these points with a straight line in Excel or another graphing utility. Insert the graph in a Word file and attach the graph in a Word file to the class DB thread. 5.Will this profit function have a maximum, if so, what is it? This profit function will not have a maximum. The function is a linear equation, and will continue to increase as the thousands of units increase. 6.What steps should the

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