SOLUTION: a financial advisor has conducted some research and has advised a company that the cost of producing their new transistor radio c, can be modeled by the equation c=18.96x+5275, whe

Question 158542: a financial advisor has conducted some research and has advised a company that the cost of producing their new transistor radio c, can be modeled by the equation c=18.96x+5275, where x is the number of radios produced. The advisor has also conducted research to determine that the best selling price of the radio is $29.99. As a result, the best model for the company's revenue R is the equation R=29.99x, where x is the number of radios sold.
The company executives have decided that they are willing to invest $10,000 in the new product. If this money is to be used for the costs of the radios, how many radios should the company be able to produce?
If the company produces the maximum number of radios with their $10,000 investment and all the radios are sold, how much revenue will the company generate from the new product?
Answer by gonzo(654) (Show Source): You can put this solution on YOUR website!
based on the numbers you provided, this is the solution.
cost of building radios is $5275.00 + ($18.96)*x where x is the number of radios produced.
Investment is $10,000 to produce maximum number of radios.
maximum number of radios that can be produced for $10,000 is determined by the formula below:

solving for x, we get

this becomes

this becomes
rounded to the nearest unit = 249 radios that can be produced.
to check the numbers, we take 5275 + 249*18.96 = 5275 + 4721.04 = total cost of $9996.04 which leaves $3.96 left over.
revenue from these 249 radio will be $29.99 * 249 = $7,467.51.
based on the numbers given, revenue generated will be less than the cost to produce the radios.
RELATED QUESTIONS
The publisher of a popular financial periodical has decided to undertake a campaign in an (answered by ikleyn)

A company is considering producing some new products. Based on past records, management... (answered by CPhill)

1. A financial advisor at Diehl Investments identified two companies that are likely... (answered by CPhill,ikleyn)

A financial advisor has invested $25,000 om twp accounts. If one account contains x... (answered by ewatrrr)

A financial advisor has invested $8000 Into 2 accounts If one account contains X dollars... (answered by Edwin McCravy)

A company has a fixed cost of $2300 when it is producing. Each item that it makes has its (answered by checkley77)

The president of a company producing water pumps has gathered data suggesting that the... (answered by josmiceli)

Hi, please help me answer this question: The president of a company producing water... (answered by Annabelle1,edjones)

How do you set up this word problem using I=P*R*T? Steve has $25,000 to invest and... (answered by stanbon)