document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=287918>Question 287918</A>: <I><SPAN STYLE=\"word-break: break-all;\"> I have a word problem here at least thats what I think this is and I have no clue how to calculate any help would be appreciated\r<BR>\n" );
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document.write( "After leaving a fulfilling career is a math teacher, Phil decides to venture out into the world of DVD sales. The cost of producing x DVD’s is given by the function C(x) = 1.3x + 275. The DVD’s can be sold on E-bay for $10 each.\r<BR>\n" );
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document.write( "(a)	What are the fixed costs?\r<BR>\n" );
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document.write( "(b)	Find the revenue and profit functions.\r<BR>\n" );
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document.write( "(c)	Find the break-even point.\r<BR>\n" );
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document.write( "(d)	If Phil manages to sell 500 DVD’s per month, what will his yearly profit be?\r<BR>\n" );
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document.write( "Eric </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #208643 by </B><A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><B>ankor@dixie-net.com(22740)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ankor@dixie-net.com><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ankor@dixie-net.com><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=208643\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The cost of producing x DVD’s is given by the function C(x) = 1.3x + 275.<BR>\n" );
document.write( " The DVD’s can be sold on E-bay for $10 each.<BR>\n" );
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document.write( "(a) What are the fixed costs?<BR>\n" );
document.write( "The fixed cost is the value which is unaffected by x, therefore<BR>\n" );
document.write( "fixed cost = 275<BR>\n" );
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document.write( "(b) Find the revenue and profit functions.<BR>\n" );
document.write( "Revenue is the number of items sold times the price paid for each item;<BR>\n" );
document.write( "R = 10x<BR>\n" );
document.write( "Profit is the revenue - the cost<BR>\n" );
document.write( "P = 10x - (1.3x + 275).<BR>\n" );
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document.write( "(c) Find the break-even point.<BR>\n" );
document.write( "Break even is when the Revenue = the cost<BR>\n" );
document.write( "10x = 1.3x + 275<BR>\n" );
document.write( "10x - 1.3x = 275<BR>\n" );
document.write( "8.7x = 275<BR>\n" );
document.write( "x = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=275%2F8.7 ALIGN=MIDDLE  ALT=\"275%2F8.7\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "x ~ 32 items sold for break-even<BR>\n" );
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document.write( "(d) If Phil manages to sell 500 DVD’s per month, what will his yearly profit be?<BR>\n" );
document.write( "Replace x with 500 in the profit equation<BR>\n" );
document.write( "P = 10(500) - (1.3(500) + 275)<BR>\n" );
document.write( "P = 5000 - 650 - 275, removing the bracket changes the sign<BR>\n" );
document.write( "P = 5000 - 925<BR>\n" );
document.write( "P = $4,075 profit in one month<BR>\n" );
document.write( "therefore<BR>\n" );
document.write( "12 * 4075 = $48,900 in 1 year<BR>\n" );
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