Y = -5.18x² + 33.29x – 480.

94

Y = -5.18x² + 33.3x – 481

Problem #65
Revenue. The marketing research department for a company that manufactures and sells memory
chips for microcomputers establish the following price- demand and revenue functions
P(X) = 75 -3x price-demand function
R(X) = x p(x) = x(75-3x) revenue function
Where p(x) is the wholesale price in dollars at which x million chip can be sold, and R(x) is in
millions of dollars. Both of functions have domain 1 ≤ x ≤ 20

Find the break-even points to the nearest thousand chips

B
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R(x) =x p(x)
.
fi
-
= x(75-3x)
Here p(x) is in dollars and R(x) is in millions of dollars and 1 < x < 20, x is in millions of chips
A The revenue function of the company is
B R(x) = x p(x)
C = x(75-3x)
(B) From the graph we get for x= 12.5 means, x= 12,500 chips the R(x) = 468.75

Here R(x) is in millions of dollars means SR(x) = 468,750,000 is maximum

The maximum revenue is SR(x) = 468,750,000 at x= 12.5

The wholesale price per chip is that will produce the maximum revenue will be obtained by putting

X = 12.5

P(x) = 75-3x

P(12.5)= 75-3(12.5)

=75-37.5

=37.5

Wholesale price per chip producing maximum revenue will be $37.5

Problem #67
Break-even analysis. Use the revenue function from the problem and the given cost function
R(x) = x(75-3x) Revenue function
C(x) = 125+ 16x Cost function
Where x is in millions of chips, and R(x) and C(x) are in millions of dollars. Both functions have
domain 1 ≤ x ≤ 20
A Sketch a graph of both functions in the same rectangular coordinate system
B Find the break-even points to the nearest thousand chips
C For what values of x will a loss occur? A profit?
Revenue. The marketing research department for a company that manufactures and sells
memory chips for microcomputers establish the following price-demand and the revenue
functions
P(x) =75-3x Price-demand function
R(x) = xp (x) = (75-3x) Revenue function
Where p(x) is the wholesale price in dollars at which x million chips can be sold and R(x) is
in millions of dollars. Both functions have a domain 1 ≤ x ≤ 20
A Sketch a graph of the revenue function in rectangular coordinate system
B Find the value of x that will produce the maximum revenue. What is the maximum
revenue?
C What is the wholesale price per chip that produce the maximum revenue?

A Let us consider the following cost function of the company

C(x) = 125 + 16x
R(x) = x(75-3x)
Here C(x) and R(x) is in millions of dollars and 1 ≤ x ≤ 20 is in millions of chips

B In order to find out the break-even point we do

 R(x) = C(x)
X(75-3x) = 125 + 16x
75x – 3x² = 125 + 16x
3x² - 59x +125 = 0
Using the formula for the quadratic equation
Ax² + bx + c = 0
The roots of the equation are given by the formula

−b ± √ b −4 ac
2
x=
2a

Substituing the values in the formula

−b ± √ b2−4 ac
x=
2a

59 ± √(59)b −4 (3)(125)
2
¿
2(3)

59 ± 44.50
¿
6

X = 2.4152
X = 17.2514
From the graph, we get the break-even points x= 2.42 and x= 17.3 means
X = 2,410,000 and x = 17, 250,000 chips and R(x) is in millions of dollars
The break-even points are x= 2.415 and x = 17.251

C As we know that profit will occur

R(x) > C(x)
Profit will occur if
R(x) < C(x)
Considering the graph, the loss will be for the region 1 ≤ x ≤ 2.42 and 17.3 ≤ x ≤ 20 where
R(x) < C(x)
The profit will be for the region 2.42 < x < 17.3 where R(x) > C(x)
The loss will be for the region 1 ≤ x < 2.42 and 17.3 < x ≤ 20
The profit will be the region 2.42 < x < 17.3

Problem # 69

Profit-loss analysis Use the revenue and cost functions from problem
R(x) = x(75-3x) revenue function
C(x) = 125 + 16x Cost function
Where x is in millions of chips and R(x) and C(x) are in millions of dollars, both functions have
domain 1 ≤ x ≤ 20
A Form a profit function P and graph R, C and P in the same rectangular coordinate system
B Discuss the relationship between the intersection points of the graph of R and C and the x
intercepts of P
C Find the x intercepts of P and the break-even points to the nearest thousand chips
D Refer to the graph drawn in part (A), does the maximum profit appear to occur at the same
value of x as the maximum revenue? Are the maximum profit and the maximum revenue
equal? Explain
E Verify your conclusion in part (D) by finding the value of x (to the nearest thousand chips)
that produces the maximum profit. Find them maximum profit (to the nearest thousand
dollars) and compare with problem
Break-even analysis. Use the revenue function from problem and the given cost function
R(x) = x(75-3x) Revenue function
C(x) = 125+ 16x Cost function
Where x is in millions of chips and R(x) and C(x) are in millions of dollars
Both functions have domain 1 ≤ x ≤ 20

A Sketch a graph of both functions in the same rectangular coordinate system

B Find the break-even points to the nearest thousand chips
C For what values of x will a loss occur? A profit?
 Revenue. The marketing research department for a company that manufactures and sells
memory chips for microcomputers established the following price-demand and revenue
functions
P(x) =75-3x price demand function
R(x) = x p(x) = x(75-3x) revenue function
Where p(x) is the wholesale price in dollars at which x million chips can be sold, and
R(x) is in millions of dollars. Both functions have domains 1 ≤ x ≤ 20
D Find the value of x that produce the maximum revenue. What is the maximum revenue?
Consider the following functions and the revenue function of the company
C(x) = 125 + 16x
R(x) = x(75-3x)
Here C(x) and R(x) is in millions of dollars and 1 < x < 20, x is in millions of chips

A Let P(x) be the profit function

P(x) = R(x) -C(x)
= [x75-3x] – [ 125 = 16x]
= 75x-3x² -125 -16x
= 59x -3x² -125
The profit fucntion is
P(x) = 59x-3x² -125
B If we go through the graph we will get the intersection point of the C(x) and R(x) curves
are
X= 2.42 and x= 17.3. the points where the P(x) curve cuts the x-axis are also x= 2.42 and
x= 17.3. Thus, we conclude that the intersection points of C(x) and R(x) curves are the
same as the points where the P(x) curve cuts the x-axis.

C The break-even points or the intersection point of the C(x) and R(x) curves are
X= 2.42 and x= 17.3 means x= 2,410,000 and 17,250,000 chips

The x intercepts of P(x) or the points where the P(x) curve cuts the x-axis are x= 2.42 and
x= 17.3 means x= 2,410,000 and x= 17,250,000 chips
D Considering the graph here the maximum profit occurs at x= 9.833 and P(x) = 165.086
which means at x= 9,833,000 P(x) = 165,086,000
For revenue, considering the graph here maximum revenue occurs at x= 12.5 and R(x) = 468.75
which means at x= 12,500,000 R(x) = 468,750,000
At x = 12,500,000 R(x) = 468,750,000 is maximum
At x = 9,833,000 P(x) = 165,086,000 is maximum
The value of x for which the R(x) and P(x) are maximum, is not the same. The maximum
revenue and the maximum profit is also the same.
E Considering the profit function P(x) =59x -3x² - 125
here the profit will be maximum at the point where the first derivative of P(x) with
respect to x will be zero.
P(x) = 59x – 3x² -125

59 x −3 x 2−125
¿
P(x) = d¿
¿

d (59 x ) d ( 3 x 2 ) d ( 125 )
= − −
dx dx dx

= 59-6x
For maximum profit P(x) =0
P(x) = 59-6x
0=59-6x
❑
59
x=
6

= 9.86
For x= 9.833
P(x) =59x 3x² -125
= 59(9.83) -3(9.83)² -125
= 580.16 -3(96.69) -125
= 165.086
Thus here it is verify that at x= 9.833 the profit is maximum wich is 165.086
Here P(x), x are in millions of dollars
Comparing with the revenue $R(x) = 468,750,000 is maximum