Question

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.Discuss the meaning of the slope of the equation that you have just graphed. How is it related to the cost of each e-reader?
3.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.)
4.If the company does not sell a single e-reader, how much is lost ? Mathematically, what is this value called in the equation?
5.If the company sells 5,000 e-readers, how much will the company make (or lose)?
6.If profit must equal 100 thousand, how many e-readers will your company need to sell? (Round up to the nearest e-reader.)
7.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.