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Project Work Add Math 2010

Project Work Add Math 2010

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Published by: Muhd Zulfahmi Mohd Sobri on Jun 28, 2010
Copyright:Attribution Non-commercial


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Business requires some form of investment either in capital form,time, energy and knowledge. In orderfor business to survive people mustagree with products. The demand isclosely related to the supply. Withmore demand the cost will be lessand less demand the cost will belower. However, the goal for businessto survive is to maxmize profit.In this project, we will try to explainthe relationship between demandand selling price based on at datacollected from the company. Fromhere, we gathered the yearly profitand how to maximize it. Variousmodels and formulas were used toanalyze the profit sructures. Theseare taken from the linear andquadratic funtions as well asdifferentiation methodology.Differentiation is A concept inEconomics and Marketing proposedby Edward Chamberlin in his 1933 Theory of Monopolistic Competition.Differentiation’s concept used inbusiness strategy and describes oneof the three ways to establish thecompetitive advantage.Differentiation advantage occurswhen a firm delivers greater servicesfor a non-unlimited higher price thanits competitors. They are collectivelyknown as positional advantagesbecause they denote the firm'sposition in its industry as a leader ineither superior services or cost.Product differentiation is what allowsfirms in monopolistic competition (amarket structure) to sell theirproducts at different prices, eventhough they are essentially thesame. The company made so much profit in2009. In order to expand he business, we decided to raise money forcapital investnment. We havetabulated monthly payment schemewith loan amount and interest ratefor various months. From here wecame out with the best loan for thecopmany and the repayment period.We have also looked into thepossibility of getting islamic loan asopposed to the conventional loan. Wehave listed the pros aqnd cons of theabove loans.
1)Maximize profit by : -a)Carrying out a survey to findthe relationship between thedemand and the selling price.b)The data observed are beingtransferred into graph.c)Making a quadratic function tofind for the maximum profitd)The maximum profit can befind by using differentiationand completing the square.e)Then, determine the numberof component to be soldaccording to the maximumprofit we can gain.2)Choosing the right loan inincreasing company’s productivity:a)Carrying out a survey in BankA for making a loan.b)Calculate the total interest wehave to pay in different periodof repayment and differentamount of loan.c)Calculate the rate of interestper month to know which loanhave a higher rate of interest.d)Calculate the yearlyrepayment for each loan.e)Find out about the amount of interest gained from saving inbanks. 
- The higher the demand thehigher the profit made. Thecomputer component’s pricedecreases when the demandof the product increases.Computer component’s is aneeded product by people.When we lower the price of computer component, so thedemand increases and theprofit made increases.

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