Project Week 10: Functions and Graphs.

Use the equations of price-demand and cost functions taken from OLHW Part 1. Project to answer the
following questions in Parts (I),(II),(III).

The marketing research department for a company that manufactures and sells computers established
the following price-demand and cost functions.

p(x)= 2023-66x 
where p(x) is the wholesale price per computer in dollars at which x thousands of computers can be
sold

C(x)= 4269+538x
where C(x) is the cost in thousands of dollars.

Domain of both functions is 0≤x≤35

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Part I. Revenue
Use your price-demand function p(x):
A. Graph the price-demand function for the Domain 0≤x≤35.
B. Find and graph the Revenue function, R(x) also in thousands of dollars.
C. Find the value of x that will produce the maximum revenue.
D. What is the maximum revenue?
E. What is the wholesale price per chip that produces the maximum revenue?

i. Use the values in the table below to graph your price-demand function point-by-point.

x p(x)= 2023-66x 
0
15
30
35

Insert the graph of price-demand function. Follow the attributes of the PERFECT GRAPH outlined in
Project instructions file.

ii. Find the revenue function. Use the values in the table below to graph your revenue function
point-by-point.

x R(x)=
0
5
10
15
20
25
30
35

Insert the graphs of R(x) and C(x).Label the break-even points.

Part II. Break-Even Analysis
Use the revenue function from Part I and your individual cost function:

R(x)=

C(x)= 4269+538x
Where x thousands of computers, and R(x) and C(x) are in thousands of dollars.

Both functions have domain 0≤x≤35.

A. Sketch a graph of revenue and cost functions in the same coordinate system.
B. Find the break-even points to the nearest thousand computers.
C. For what values of x will a loss occur? Use the interval notation
D. For what values of x will a profit occur? Use the interval notation.

i. Use the values in the table below to graph your price-demand function point-by-point.

x C(x)= 4269+538x
0
15
30
35

x R(x)=
0
5
10
15
20
25
30
35

Insert the graphs of R(x) and C(x). Label the break-even points.
Part III. Profit-Loss analysis
Use revenue and cost functions:

R(x)=

C(x)= 4269+538x
Where x thousands of computers, and R(x), C(x), and P(x) are in thousands of dollars.

All three functions have domain 0≤x≤35.

A. Find the profit function P(x) and graph R, C, and P in the same coordinate system.
B. Discuss the relationship between the intersection points of the graphs R and C and the x
intercepts of P.
C. Find the x intercepts of P.
D. Refer to the graph of R,C, and P. Does the maximum profit appears to occur at the same value
of x as the maximum revenue? Explain.
E. Are the maximum profit and the maximum revenue equal? Explain.
F. Verify your conclusion in part (D) by finding the value of x (to the nearest thousand chips) that
produce maximum profit, and compare with answer to the Part I (C.)

x P(x)=
0
5
10
15
20
25
30
35

Insert the graphs of R(x), C(x), and R(x). Label the break-even points and x-intercepts of P(x).