SOLUTION: The profit madeby a company when 60 units of its product is sold is R1600. When 150 units of its products are sold, the profit increases to R5200. Assuming that the profit funtio

Question 1138423: The profit madeby a company when 60 units of its product is sold is R1600. When 150 units of its products are sold, the profit increases to R5200. Assuming that the profit funtion 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:
1.1. Values of a and b
1.2. Break-even level
1.3. Number of units that need to bbe sold to realise a profit of R12 000.
Answer by josgarithmetic(39621) (Show Source): You can put this solution on YOUR website!
(60, 1600) & (150, 5200) points (u, P).

COMPARE THIS TO YOUR EQUATION'S FORM: P(u) =a+ bu
or compare it with P=-800+40u.
You see now?

Next questions, you just USE the equation found.

---
1.2. Break-even level
---

Profit is 0, so let P(u)=0 and solve for u.

---
1.3. Number of units that need to bbe sold to realise a profit of R12 000.
---
That means, P(u)=12000; solve for u.
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