Question

The profit made by a company when 60 units of its product is sold is R1600.00. When 150 units of its product is sold, the profit increases to R5200. Assuming that the profit function is linear and of the form
P(u) =a+but where Possible is the profit in Rands and u is the number of units sold, determine the:
1. Value of a and b
2. Break-even level
3. Number of units that need to be sold to realise a profit of R12 000. 00.

Answer 1

Answer:

a = -800

b = 40

20 units for break even

320 units for Rs 12000 profit

Step-by-step explanation:

P(u) = a + bu

P(60) = 1600

1600 = a + 60b

P(150) = 5200

5200 = a + 150b

=> 90b = 3600

=> b = 40

1600 = a + 60(40)

=> a = -800

P(u) = -800 + 40u

Break even when profit = 0

0 = -800 + 40u

u = 20

20 units

12000 = -800 + 40u

=> u = 12800/40

=> u = 320