Question

The costs of doing business for a company can be found by adding fixed costs, such as rent, insurance, and wages, and variable costs, which are the costs to purchase the product you are selling. The portion of the company’s fixed costs allotted to this product is $300, and the supplier’s cost for a set of tile is $6 each. Let x represent the number of tile sets.

Answer 1

Keep going...

Answer 2

A company’s revenue is the amount of money that comes in from sales, before business costs are subtracted. For a single product, you can find the revenue by multiplying the quantity of the product sold, x, by the demand equation, p.

b. Substitute the result you found from part a. into the equation R = xp to find the revenue equation. Provide your answer in simplified form

Answer 3

all of that come from this
uppose a market research company finds that at a price of p = $20, they would sell x = 42 tiles each month. If they lower the price to p = $10, then more people would purchase the tile, and they can expect to sell x = 52 tiles in a month’s time. Find the equation of the line for the demand equation. Write your answer in the form p = mx + b. Hint: Write an equation using two points in the form (x,p).

Answer 4

from appendix c

Answer 5

On the last part, they are giving you two points on a line (42, 20) and (52, 10). So, you can find the slope of the line from there. Then, using one of the points, you can find b.

Answer 6

i got the first part

Answer 7

its the second part

Answer 8

What is the slope of the line you got?

Answer 9

the first part i got p(x) = -x + 62

Answer 10

b. Substitute the result you found from part a. into the equation R = xp to find the revenue equation. Provide your answer in simplified form.

Answer 11

R = xp. If p = -x + 62, you can re-write as x = 62-p.

So R = ?

Answer 12

c. If b represents a fixed cost, what value would represent b?

Answer 13

First do part b based on my note above. We will worry about part c later.

Answer 14

r =-62?

Answer 15

Revenue can't be a constant. It must depend on price and quantity sold. Quantity sold is based on price. So, revenue must be dependent on price.

You have two equations:
1) R = xp
2 x = 62-p.
So, substituting (2) into (1), you get R = (62-p)p = 62p - p^2.

Answer 16

is it 300?

Answer 17

Depends on what value of p you use. R = 62p - p^2.

Answer 18

hhmmmm

Answer 19

i'm confused

Answer 20

You said:
the first part i got p(x) = -x + 62

Right?

Answer 21

yes

Answer 22

So, all it says is that price (p) and number sold (x) are related by that equation. As you would expect. As price goes up, number of units sold goes down. So far, so good.

Answer 23

Yeah?

Answer 24

ok

Answer 25

Now, the next part of the question says what is the equation for Revenue generated. Revenue = number of items sold * price of each item.

R = x times p.

Ok so far?

Answer 26

ok

Answer 27

Based on your "demand" equation, x can itself be expressed in terms of p. Because p = -x + 62, you can say x = 62 - p.

Substituting this formula for x into the equation for R, you get R = (62-p) times p. Or, R = 62p - p^2

Answer 28

i see that

Answer 29

So, part b is done now.

Answer 30

part c is not clear to me. Is b representing fixed cost per unit? I would think. Total fixed cost is already given as 300.

Answer 31

thats true

Answer 32

its a given

Answer 33

Fixed cost per unit = total fixed cost divided by units sold (x).
So, b = 300/x = 300 / (62 - p).

Answer 34

i think so

Answer 35

Based on what was provided, I can't do much further.

Answer 36

thanks for trying though