Answer:
Step-by-step explanation:
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Answer:</h3>
D-Salary(33) or S(33)
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Answer:
<em>The company needs to sell 40 desks to break even</em>
Step-by-step explanation:
<u>Application of Equations</u>
There is virtually no limit to the possible situations where equations can help to find the solution of specific problems related to areas like economy, where one could need to establish some important indicators about the business.
B. The fixed cost for Abstract Office Supplies to sell a new computer desk is $14,000. Each desk will cost $150 to produce. The cost function to produce X desks is
C(x)=150x+14,000
A. The revenue for each desk is estimated at $500, for X desks will be
R(x)=500x
C. The company will break even when the cost and the revenue are the same. We'll find how many desks need to be sold for that to happen. We equate
C(x)=R(x)
Or equivalently
150x+14,000=500x
Rearranging
500x-150x=14,000
350x=14,000
Solving for x
x=14,000/350= 40
The company needs to sell 40 desks to break even
The annual returns will be calculated as follows:
a] Here we use the formula:
A=p(1+r/100)^n
A=future amount
p=principle
r=returns
n=time
We are given:
A=500, p=400, t=1
Plugging the values in the formula we obtain:
500=400(1+r)^1
simplifying and solving for r:
1.25=1+r
thus
r=1.25-1
r=0.25~25%
b] Using the formula above:
A=p(1+r/100)^n
A=2500+100=2600, p=2000, n=1 year
plugging the values in the equation we obtain:
2600=2000(1+r)^1
simplifying and solving for r we obtain:
2600/2000=1+r
1.3=1+r
hence
r=1.3-1
r=0.3~30%