Profit = (Cost Per Item × Number of Items) – Constant Charges

In this equation, constant charges may be rent, salaries, or other fixed costs. This includes anything that you have to pay for periodically as a business owner. This value is negative because this cost must be paid each period and must be paid whether you make a sale or not.

Your company may wish to release a new e-reader device. Based on data collected from various sources, your company has come up with the following regression equation for the profit of the new e-reader:

Profit = $0.15 × number of e-readers sold – $28

Or, as

Question

Profit = (Cost Per Item × Number of Items) – Constant Charges

In this equation, constant charges may be rent, salaries, or other fixed costs. This includes anything that you have to pay for periodically as a business owner. This value is negative because this cost must be paid each period and must be paid whether you make a sale or not.

Your company may wish to release a new e-reader device. Based on data collected from various sources, your company has come up with the following regression equation for the profit of the new e-reader:

Profit = $0.15 × number of e-readers sold – $28

Or, as

anonymous · Answer

Profit = (Cost Per Item × Number of Items) – Constant Charges

In this equation, constant charges may be rent, salaries, or other fixed costs. This includes anything that you have to pay for periodically as a business owner. This value is negative because this cost must be paid each period and must be paid whether you make a sale or not.

Your company may wish to release a new e-reader device. Based on data collected from various sources, your company has come up with the following regression equation for the profit of the new e-reader:

Profit = $0.15 × number of e-readers sold – $28 

Or, assuming x = the number of e-readers sold, this would be the same regression equation: 

Profit = 0.15x – 28 



In this case, the values are given in thousands (i.e., the cost of making an individual e-reader will be $150 [0.15 × 1,000], with $28,000 [28 * 1,000] in constant charges). 
Answer the following questions based on the given regression equation:

1.Using the graphing program that you downloaded, graph the profit equation. Discuss the meaning of the x- and y-axis values on the graph. (Hint: Be sure to label the axis)  
2.Based on the results of the graph and the profit equation provided, discuss the relationship between profits and number of e-readers produced. (Hint: Consider the slope and y-intercept.) 
3.If the company does not sell a single e-reader, how much is lost ? Mathematically, what is this value called in the equation? 
4.If the company sells 5,000 e-readers, how much will the company make (or lose)? 
5.If profit must equal 100 thousand, how many e-readers will your company need to sell? (Round up to the nearest e-reader.) 
6.If your company is hoping to break even, how many e-readers will need to be sold to accomplish this? (Round up to the nearest e-reader.)Please submit your assignment. 
***Access Lab Write Resources' how-to instructional guide to regression graphing in Microsoft Excel' by clicking here.***

Click on Student Expectations to view the expectations for this assignment.

mathteacher1729 · Answer

1) What graphing program are they having you use?

mathteacher1729 · Answer

Tiger... reply to THIS question page... Don't post the same question over and over.  The discussion about each question asked happens on its own question page.

anonymous · Answer

I have the same question as tiger the graph program that they had me download just says graph

anonymous · Answer

I am struggling with this assignment also. but to answer the issue that Tiger did not: Windows Based Computers: Download the graphing program from www.padowan.dk/graph. The instructions for using this program can be found in the Instructor's Files of your Virtual Classroom. Apple (Mac) Based Computers: Download the graphing program from http://www.geogebra.org/cms/.