Concept explainers
Reminder Round all answers to two decimal places unless otherwise indicated.
Profit The total cost
Suppose that a manufacturer of widgets has a fixed costs of $2000 per month and that the variable cost is $30 per widget. Further, the manufacturer has developed the following table showing the highest price
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a. Use a formula to express the total monthly cost
b. Use the table to find a linear model of
c. Use your answer to part b to find a formula expressing the total monthly revenue
d. Use your answers to part a and part c to find a formula expressing the monthly profit
e. Find the two monthly production levels at which the manufacturer just breaks even (that is, where the profit is zero).
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Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
- Reminder: Round all answer to two decimal places unless otherwise indicated. 15.Total Cost The total cost C for a manufacturer during a given time period is a function of the number N of items produced during that period. To deter mine a formula for the total cost, we need to know the manufacturers fixed costs covering things such as plant maintenance and insurance, as well as the cost for each unit produced, which is called the variable cost. To find the total cost, we multiply the variable cost by the number of items produced during that period and then add the fixed costs. Suppose that a manufacturer of widgets has fixed costs of 9000 per month and that the variable cost is 15 per widget so it costs 15 to produce 1 widget. a. Use a formula to express the total cost C of this manufacturer in a month as a function of the number of widgets produced in a month. Be sure to state the units you use. b. Express using functional notation the total cost if there are 250 widgets produced in a month, and then calculate that value.arrow_forwardReminder Round all answer to two decimal places unless otherwise indicated. Total Cost The total cost C for a manufacturer during a given time period is a function of the number N of items produced during that period. To determine a formula for the total cost, we need to know two things. The first is the manufacturers fixed costs. This amount covers expenses such as plant maintenance and insurance, and it is the same no matter how many items are produced. The second thing we need to know is the cost for each unit produced, which is called the Variable cost. Suppose that a manufacturer of widgets has fixed costs of 1500 per month and that the variable cost is 20 per widget so it costs 20 to produce 1 widget. a. Explain why the function giving the total monthly cost C, in dollars, of this widget manufacturer in terms of the number N of widgets produced in a month is linear. Identify the slope and initial value of this function, and write down a formula. b. Another widget manufacturer has a variable cost of 12 per widget, and the total is 3100 when 150 widgets are produced in a month. What are the fixed costs for this manufacturer? c. Yet another widget manufacturer has determined the following: The total cost is 2700 when 100 widgets are produced in a month, and the total cost is 3500 when 150 widgets are produced in a month. What are the fixed costs and variable costs for this manufacturer?arrow_forwardReminder Round all answer to two decimal places unless otherwise indicated. Real Estate Sales A real estate agency has fixed monthly costs associated with rent, staff salaries, utilities, and supplies. It earns its money by taking a percentage commission on total real estate sales. During the month of July, the agency had total sales of 832,000 and showed a net income after paying fixed costs of 15,704. In August, total sales were 326,000 with a net income of only 532. a. Use a formula to express net income as a linear function of total sales. Be sure to identify what the letters that you use mean. b. Plot the graph of net income and identify the slope and vertical intercept. c. What are the real estate agencys fixed monthly costs? d. What percentage commission does the agency take on the sale of a home? e. Find the horizontal intercept and explain what this number means to the real estate agency.arrow_forward
- Reminder Round all answers to two decimal places unless otherwise indicated. Inflation The yearly inflation rate tells the percentage by which prices increase. For example, from 1990 through 2000, the inflation rate in the United States remained stable at amount 3 per year. In 1990, an individual retired on a fixed income of 36,000 per year. Assuming that the inflation rate remains at 3, determine how long it will take for the retirement income to deflate to half its 1990 value. Note: To say that retirement income has deflated to half its 1990 value means that prices have doubled.arrow_forwardReminder Round all answer to two decimal places unless otherwise indicated. Total Revenue and Profit This is a continuation of Exercise 13. The total revenue R for a manufacturer during a given time period is a function of the number N of items produced during that period. In this exercise, we assume that the selling price per unit of the item is a constant, so it does not depend on the number of items produced. The profit P for a manufacturer is the total revenue minus the total cost. If the profit is zero, then the manufacturer is at a break-even point. We consider again the manufacturer of widgets in Exercise 13 with fixed costs of 1500 pr month and a variable cost of 20 per widget. Suppose the manufacturer sells 100 widgets for 2300 total. a. Use a formula to express the total monthly revenue R, in dollars, of this manufacturer in a month as function of the number N of widgets produced in a month. b. Use a formula to express the monthly profit P, in dollars, of this manufacturer as function of the number of widgets produced in a month. Explain how the slope and initial of P are derived from the fixed costs, variable cost, and price per widget. c. What is the break-even point for this manufacturer? d. Make graphs of total monthly cost and total monthly revenue. Include monthly production levels up to 1200 widgets. What is the significance of the point where the graphs cross?arrow_forwardReminderRound all answers to two decimal places unless otherwise indicated. InflationDuring a period of high inflation, a political leader was up for re-election. Inflation had been increasing during his administration, but he announced that the rate of increase of inflation was decreasing. Draw a graph of inflation versus time that illustrates this situation. Would this announcement convince you that economic conditions were improving?arrow_forward
- Reminder Round all answers to two decimal places unless otherwise indicated. Quarterly Pine Pulpwood PricesIn southwest Georgia, the average pine pulpwood prices vary predictably over the course of the year, primarily because of weather. Prices in 2009 followed this pattern. At the beginning of the first quarter, the average price P was 9 per ton. During the first quarter, prices declined steadily to 8 per ton, then remained steady at 8 per ton through the end of the third quarter. During the fourth quarter, prices increased steadily from 8 to 10 per ton. a.Sketch a graph of pulpwood prices as a function of the quarter in the year. b.What formula for price P as a function of t, the quarter, describes the price from the beginning of the year through the first quarter? c.What formula for price P as a function of t, the quarter, describes the price from the first to the third quarter? d.What formula for price P as a function of t, the quarter, describes the price from the third to the fourth quarter? e.Write a formula for price P throughout the year as a piecewise-defined function of t, the quarter.arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. World Copper Production World production of copper, in millions of tons per year, from 1900 to 2000 is given by C=0.51.033t, where t is the time in years since 1900. a.What production level does this model give for the year 2000? b.If this model were extended to 2025, how could you use your knowledge of copper production in 2024 to estimate copper production in 2025?arrow_forwardReminderRound all answers to two decimal places unless otherwise indicated. Protein Content of Wheat GrainProtein content of wheat grain is affected by soil moisture and the amount of available nitrogen among other things. Figure 1.45 shows" the percent of protein content of wheat grain versus pounds of nitrogen per acre applied in three separate situations. In each case, soil moisture refers to moisture at the soil depth of 2 inches to 12 inches. Situation 1: Irrigation was used when soil moisture dropped to 49. Situation 2: Irrigation was used when soil moisture dropped to 34. Situation 3: Irrigation was used when soil moisture dropped to 1. a. If irrigation begins when soil moisture reaches 49, what application of nitrogen will result in the lowest percentage of protein in wheat grain? b. If irrigation begins when soil moisture reaches 34, what application of nitrogen will result in the same protein content of wheat grain as beginning irrigation when soil moisture reaches 1? c. If you irrigate when soil moisture reaches 34, how much nitrogen should you apply to achieve a 13 protein content in wheat grain? d. Does Figure 1.45 indicate that, for nitrogen levels at 45 pounds per acre or higher, increased protein content in wheat grain is associated with higher or lower soil moisture? FIGURE 1.45 Protein content versus availability of nitrogenarrow_forward
- Reminder Round all answers to two decimal places unless otherwise indicated. The MacArthur-Wilson Theory of Biogeography Consider an island that is separated from the mainland, which contains a pool of potential colonizer species. The MacArthur-Wilson theory of biogeography hypothesizes that some species from the mainland will migrate to the island, but that increasing competition on the island will lead to species extinction. It further hypothesizes that both the rate of migration and the rate of extinction of species are exponential functions, and that an equilibrium occurs when the rate of extinction matches the rate of immigration. This equilibrium point is thought to be the point at which immigration and extinction stabilize. Suppose that, for a certain island near the mainland, the rate of immigration of new species is given by I=4.20.93tspeciesperyear and that the rate of species extinction on the island is given by E=1.51.1tspeciesperyear. According, to the MacArthur-Wilson theory, how long will be required for stabilization to occur, and what will be the immigration and extinction rates at that time?arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. Insect ControlDDT dichlorodiphenyltrichloroethane was used extensively from 1940 to 1970 as an insecticide. It still sees limited use for control of disease. But DDT was found to be harmful to plants and animals, including humans, and its effects were found to be lasting. The amount of time that DDT remains in the environment depends on many factors, but the following table shows what can be expected of 100 kilograms of DDT that has seeped into the soil. t=time,inyearssinceapplication D=DDTremaining,inkilograms 0 100.00 1 95.00 2 90.25 3 85.74 a. Show that the data are exponential. b. Make a model of D as an exponential function of t. c. What is the half-life of DDT in the soil? That is, how long will it be before only 50 kilograms of DDT remain?arrow_forwardReminder Round all answers to two decimal places unless otherwise indicated. A wedding Reception You rent a wedding venue for a cost of 3200. The cost includes a catered lunch for 50 guests. For each addition guest, though, the catered lunch costs 31. a. What is the cost of the venue and lunch if you invite 100 guests. b. Find a formula showing the cost of the venue and the lunch as a function of n, the number of guests. Assume that n is at least 50. c. The amount you have budgeted for the venue and catered lunch is 5500. How many guests can you invite.arrow_forward
- Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning