SOLUTION: I do not understand how to set up this equation. A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they can produce 100,000 chips per week at a

Question 136363: I do not understand how to set up this equation.
A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they can produce 100,000 chips per week at a cost of $40 per chip, and sell them for $65 per chip. They also find that they can produce 125,000 chips per week at a cost of $35 per chip, and sell them for $63 per chip. How much profit can they expect to earn if they produce 130,000 chips per week?
Thank you very much!!!!
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they can produce 100,000 chips per week at a cost of $40 per chip, and sell them for $65 per chip. They also find that they can produce 125,000 chips per week at a cost of $35 per chip, and sell them for $63 per chip. How much profit can they expect to earn if they produce 130,000 chips per week?
:
Assuming this is linear relationship
:
Profit at 100,000: 65-40 = $25
:
Profit at 125,000: 63-35 = $28
:
Let x = no. of chips in 1000's; (Sorry, I made a mistake here, it should be x)
:
x1 = 100, y1 = 25
x2 = 125, y2 = 28
:
Using the slope formula: m =
:
m = =
:
Use the point/slope formula: y - y1 = m(x - x1)
:
y - 25 = (x - 100)
y - 25 = x -
y = x - 12 + 25
y = x + 13
:
Using the above equation: x = 130
y = (130) + 13
y = 15.6 + 13
:
y = $28.60 profit for 130,000 chips

RELATED QUESTIONS
A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they... (answered by jojo14344)

A semiconductor manufacturer seeks to maximize its profits. Testing indicates that they... (answered by stanbon)

Solve the followings : 1)A semiconductor manufacturer seeks to maximize its... (answered by josmiceli)

A semiconductor manufacturer seeks to maximize its profit. Testing indicates that they... (answered by )

a semi-conductor manufacturer seeks to maximize it's pprofits. testing indicates that... (answered by ankor@dixie-net.com)

2. A radio manufacturing company makes two styles of radio � battery powered and solar... (answered by stanbon)

I know how to set the problem up but I do not understand how they the get the answer to... (answered by stanbon)

log8 x=3 I do not know the way to set up this equation. (answered by stanbon)

Hello I am trying to solve the following: A company has a profit function: P(n) = (answered by Earlsdon)