A division of a company produces income tax apps for smartphones. Each income tax app sells for $9. The monthly fixed costs incu
rred by the division are $20,000, and the variable cost of producing each income tax app is $4.
(a) Find the break-even point for the division.
(x, y) =
Incorrect: Your answer is incorrect.
(b) What should be the level of sales in order for the division to realize a 10% profit over the cost of making the income tax apps? (Round your answer up to the nearest whole number.)
income tax apps
(a) Find the break-even point for the division.
(x, y) =
Incorrect: Your answer is incorrect.
(b) What should be the level of sales in order for the division to realize a 10% profit over the cost of making the income tax apps? (Round your answer up to the nearest whole number.)
income tax apps
1 answer:
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Answer:
Step-by-step explanation:
Given
Required
Eliminate a
Multiply the first equation by -4
Add to the second equation
Solve brackets
Open bracket
At this point, a has been eliminated;
From the list of given options, the option that answers the question is
Answer:
N(1)=50 is a minimum
N(15)=4391.7 is a maximum
Step-by-step explanation:
<u>Extrema values of functions </u>
If the first and second derivative of a function f exists, then f'(a)=0 will produce values for a called critical points. If a is a critical point and f''(a) is negative, then x=a is a local maximum, if f''(a) is positive, then x=a is a local minimum.
We are given a function (corrected)
(a)
First, we take its derivative
Solve N'(t)=0
Simplifying
Solving for t
Only t=1 belongs to the valid interval
Taking the second derivative
Which is always positive, so t=1 is a minimum
(b)
N(1)=50 is a minimum
(c) Since no local maximum can be found, we test for the endpoints. t=1 was already determined as a minimum, we take t=15
(d)
N(15)=4391.7 is a maximum