Problema Solution
A magazine company had a profit of $98,000 per year when it had 32,000 subscribers. When it obtained 36,000 subscribers, it had a profit of $122,500. Assume that the profit P is a linear function of the number of subscribers s.
(a) Find the function P.
P(s) =
(b) What will the profit be if the company obtains 50,000 subscribers?
$
(c) What is the number of subscribers needed to break even?
subscribers
Answer provided by our tutors
(a) Find the function P.
We assume P(s) = as + b
32000a + b = 98000
36000a + b = 122500
a=6.125
b= -98000
P(s) = 6.125s - 98000
(b) What will the profit be if the company obtains 50,000 subscribers?
When s = 50000, P(50000)= 6.125*50000 - 98000 = $208,250
(c) What is the number of subscribers needed to break even?
P(s)=0
6.125s - 98000 =0
S = 16,000