Question

The profit made by a company when 60 units of its product is sold is R 1 600.00. When 150
units of its products are sold, the profit increases to R 5 200.00. Assuming that the profit
function is linear and of the form
() = + where is the profit in Rands and is the number of units sold, determine
the:
1.1 Values of and . (4 marks)
1.2 Break-even level. (3 marks)
1.3 Number of units that need to be sold to realise a profit of R 12 000.00

Answer 1

the profit made by a company when 60 units of its product is sold is r 1 600.00. when 150 units of its products are sold, the profit increases to r 5 200.00. assuming that the profit function is linear and of the form p(u) = a +bu where p is the profit in rands and u is the number of units sold, determine the values of a and b.