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vloraboy February 21st, 2009 10:54 AM

Can somebody help solve this problems please
A radio manufacturing firm has fixed cost of \$25.000 cost and variable cost of \$75.80 per radio. The radio sells for \$119.95.
Write an expression for the profit function and find the number of radios that must be sold to break even.

If money is invested at 9%, what is the effective annual rate if the investment is compounded
a) quarterly?
b) monthly?
c) daily?
d) countinuously?

skipjack February 26th, 2009 01:16 AM

Why are there three zeros in the fixed cost? Is it typed correctly?

For the questions about interest rates, read this article.

shynthriir February 26th, 2009 09:11 AM

If the zeros are correct and the fixed cost is just \$25.00, then you break even after the first radio because 119.95 - 25.000 - 75.80 = 19.15. Meaning you are making \$19.15 profit off the first radio sold.

Now, assuming the fixed cost is supposed to be \$250.00, the formula becomes

Because you can't sell .66 of a radio, round up to the nearest digit. So you need to sell 6 radios to start turning a profit. Total profit can be calculated with the function

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As for the second question, I could be wrong, but here it goes:




Countinuously: not sure how to do this one though
You could do it with calculus though like

The limit should also equal I believe, again, don't quote me on it though...

skipjack April 2nd, 2009 01:05 PM

That limit is 1-e^0.09, but is the formula correct?

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