Expert: Ahmed Salami - 9/3/2009

Question
I have no ideaa how to do this so ill show u everything!!

6. You decide to sell the sandwiches for $1.25 each.

Number of sandwiches sold_____________Revenue
            5                        $1.25*5=$6.25
            55                       $1.25*55=$68.75
            250                      $1.25*250=$312.50
            345                      $1.25*345=$431.25
7. Can you find a formula for the revenue?
Let x=number of sandwiches sold.
Let R= total revenue in dollars.

would it be 1.25x=R ???

8. Graph th Revenue function.
(a) What is the y-intersept?
(b) what does this intercept mean when interpreted in our revenue model?
(c) What is the slope of the straight-line graph of the revenue function?
(d) What does the slope mean when interpreted in our revenue model?

9.Graph the cost and revenue functions on the same axes.

10. What does the intersection point mean about cost  and revenue?

11. Calculate a few values of the cost and revenue less the break-even x and a few values greater than the break-even x. What do you notice about the relation between the cost and revenue?

12. The profit is defined to be the revenue minus the cost:P=R-C. Write the equation for the profit using your equations from above for R and C

Answer
Hi Cindy,
You've provided scarce information but i'll do what i can.
7. Yes, the revenue function would be R = 1.25x

8. From a graph of the function,
a. The y-intercept would be 0 since the line passes through the origin.
b. It means that when there are no sandwiches there is no revenue i.e no fixed portion of revenue.
c. The slope of the function is simply 1.25
d. It means that every 1 unit change in number of sandwiches brings about a $1.25 change in revenue.

9. Unfortunately, you havent provided any form of cost detail or function.

10. When cost is equal to revenue, it means that no profit is made at that market situation.

11. Same as in 9

12. Same as in 9

I hope i have helped as much as i can.

Regards