Question

The profit made by a company when 60 units is sold is R1600.00.When 150 units of its products are sold the profit increases to R5200.00.Assuming that the profit function is linear and of the form
p(u)=a + b where p is the profit in rand and u is the number of units sold ,determine

1)values of both a and b
2)break even level
3)number of units that needs to be sold to realize a profit of R12000.00

Answer 1

Answer:

a= -800 , b = 40

break even level is 20 units

320 units needs to be sold to realize a profit of R12000

Step-by-step explanation:

P(x) = a + bx

P(60) = 1600

a + 60b=1600      ................(1)

P(150) = 5200

a + 150b = 5200   ..............(2)

subtract equation (1)   form (2)

90b = 3600

   b = 3600/90

   b = 40

put this value of in equation (1)

a + 60b=1600

a + 60(40) = 1600

a+2400 = 1600

a = -800

P(x) = -800 + 40x

Break even when profit = 0

-800 + 40x = 0

x = 20

12000 = -800 + 40x

x = 12800/40

x = 320