Problema Solution
1. supposeacell phone servicecosts$45 per month, along with a$60 activation fee.
a. Write a costequationthat relates the number of months of serviceand the total cost for that time of service.(hint: Let t= the number of months of service and c= the total cost of $1,185.
2. Your company has determined that the profit equation (in thousands of dollars)+ of producing x thousand smartphones is as follows:
Profit=-x2 +110x -1,000
Ifthe number of smartphones is 40,000, for example, then x= 40). The break-even point is the number of smartphones sold and produced that would result in a profit of zero. Use your preferred method for solving the quadratic equation to determine the break-even point.
Answer provided by our tutors
1a. c = 45t + 60
2. Break-even point: -x^2 + 110x - 1000 = 0
This can be factorised: (-x+100)(x-10)=0
solutions x=10, x=100. So break-even point is either 10,000 or 100,000 smartphones.