You deposit $1500 in an account that pays 5% interest compounded yearly. Find
2 answers:
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Answer:
(a) P(x) = 300 x - 3600
(b) P(340) = $ 98400
(c) At least 12 items must be sold to avoid losing money.
Step-by-step explanation:
Part (a):
The Profit function is the difference between the revenue function (R(x)) and the Cost (C(x)) function:
P(x) = R(x) - C(x)
P(x) = 384 x - [84 x + 3600]
P(x) = 384 x - 84 x - 3600
P(x) = 300 x - 3600
Part (b):
The profit on 340 items is:
P(340) = 300 (340) - 3600
P(340) = 102000 - 3600
P(340) = $ 98400
Part (c):
To avoid losing money, the profit P(x) has to be larger or equal than zero. That is:
P(x) 0
300 x -3600 0
300 x 3600
x 3600/300
x 12
So at least 12 items must be sold to avoid losing money.