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aliya0001 [1]
3 years ago
10

2. An apartment complex has a demand given by p = -5x + 860,

Mathematics
1 answer:
drek231 [11]3 years ago
3 0

The required equations computed from the data given are :

  • R(x) = 860x - 5x²
  • C(x) = 120x + 6000
  • P(x) = 740x - 5x² - 6000
  • Break even point = 139 gallons and 9 apartment

<u>Given the Parameters</u> :

  • Price per apartment, p = - 5x + 860
  • x = number of apartments rented
  • Fixed cost = 6000
  • Maintainance cost per apartment = $120

<u>The Revenue Function, R(x) </u><u>:</u>

  • Price per apartment × Number of apartments rented

  • (-5x + 860)x ;
  • R(x) = 860x - 5x²

<u>The Cost equation, C(x)</u> :

  • Fixed cost + Maintenance cost per apartment
  • C(x) = 6000 + 120x

<u>The Profit function, P(x)</u> ::

P(x) = R(x) - C(x)

P(x) = 860x - 5x² - (6000 + 120x)

P(x) = 860x - 5x² - 6000 - 120x

P(x) = 740x - 5x² - 6000

<u>Number of apartments required to break even</u> :

At break even ;

P(x) = 0

740x - 5x² - 6000 = 0

Divide through by 5

-x² + 148 - 1200 = 0

<em>Using a quadratic calculator</em> :

The roots are (139.39, 8.60)

Therefore. The company will break even at 139 apartments rented or 9 apartments.

Learn more :brainly.com/question/8882508

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