2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always posi
1 answer:
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Answer:
(A) p = -0.002x +6; 0 ≤ x ≤ 3000
(B) R(x) = x(6 -0.002x); 0 ≤ x ≤ 3000
(C) C(x) = 1.44x +1903
(D) (550, 2695), (1730, 4394.20)
(E) P(x) = -0.002x^2 +4.56x -1903
(F) increasing at $2.16 per hamburger
Explanation:
(A) The two-point form of the equation for a line can be used.
y = (y2 -y1)/(x2 -x1)(x -x1) +y1
The two points we have are ...
(x, p) = {(1750, 2.50), (1450, 3.10)}
so the equation is ...
p = (3.10 -2.50)/(1450 -1750)/(x -1750) +2.50
p = 0.6/-300(x -1750) +2.50
p = -0.002x +6
The domain of this function is where x and p are greater than 0. That will be for ...
0 ≤ x ≤ 3000
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(B) Revenue is the product of burgers sold (x) and their price (p).
R(x) = xp
R(x) = x(6 -0.002x)
The domain of R(x) is 0 ≤ x ≤ 3000. This is the same as the domain of p(x).
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(C) The cost function is the sum of fixed costs and variable costs:
C(x) = 1.44x +1903
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(D) See the attachment for a graph of cost and revenue. The break-even points are (x, revenue) = (550, 2695), (1730, 4394.20).
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(E) Profit is the difference between revenue and cost.
P(x) = R(x) - C(x) = x(6 -0.002x) -(1.44x +1903)
P(x) = -0.002x^2 +4.56x -1903
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(F) The marginal profit is the derivative of the profit function:
P'(x) = -0.004x +4.56
P'(600) = -0.004(600) +4.56 = -2.40 +4.56 = 2.16
At a production level of 600, the profit is increasing at a rate of $2.16 per hamburger.
Answer:
9.43%
Explanation:
The computation of the internal rate of return is calculated by using the spreadsheet which is shown in the attachment
The internal rate of return is the return at which the net present value comes to zero i.e.
Net present value = 0
initial investment = Present value of cash flows after taking the discounting factor
After solving the given problem, the internal rate of return is 9.43%
