Question

Your company would like to know how sales levels affect profits. If too few items are sold, then there is a loss. Even if too many items are sold, however, the company can lose money (likely because of low pricing). It is good to know how many items can be sold for there to be profit.

Functions are very useful in many areas, such as in business to find the profit an organization is making. For example, the following function expresses profit in terms of the number of phones sold by a particular company:

P(x) = –x2 + 110x – 1,000

This function can be used to compute the profit (in thous

Answer 1

Task Background

Your company would like to know how sales levels affect profits. If too few items are sold, then there is a loss. Even if too many items are sold, however, the company can lose money (likely because of low pricing). It is good to know how many items can be sold for there to be profit.

Functions are very useful in many areas, such as in business to find the profit an organization is making. For example, the following function expresses profit in terms of the number of phones sold by a particular company:

P(x) = –x2 + 110x – 1,000

This function can be used to compute the profit (in thousands of dollars) from producing and selling a certain number, x, of thousands of smartphones.

1. Compute the following: P(5), P(50), and P(120). Then, interpret the results.
2. Graph the function using the Padowan Graph program (> http://www.padowan.dk/graph). Paste the graph that you create into your assignment.
3. Discuss and interpret the meaning where the profit function crosses the x-axis. Refer to last week’s assignment concerning break-even points, and interpret the graph. Also, discuss where the graph is above and below the x-axis, explaining what that means in terms of profitability.