Question

the profit made by a company when 60 units of its product is sold is R 1600 .When 150 units of its products are sold ,the profit increases to R5200.Assuming that the profit function is linear and of the form
p(u)=a+b(u)where P 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 needs to be sold to realise a profit of R12000

Answer 1

Answer:

Step-by-step explanation:

This is a linear equation so we form two simultaneous equations:

a + 60b = 1600..........1)

a + 150b = 5200...............2)

Subtracting 1 from 2 we have :

90b = 3600

b = 3600/90

b = 40

Substitute in 1 to get a :

a + (60 × 40) = 1600

a = 1600 - 2400

= -800

2) Break even level = -800/40

= - 20

3) 12000 = -800 + 40b

40b = 12000 + 800

40b = 12800

b = 320

= 320 units