document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=106474>Question 106474</A>: <I><SPAN STYLE=\"word-break: break-all;\"> the total monthly cost C(q) of a retail operation is linearly related to the quanitity q, by the following equation: C(q) = 0.52 q + 30,000.  They can sell each unit for 0.80cents<BR>\n" );
document.write( "a)  what are the two parameters of the cost equation<BR>\n" );
document.write( "b) what is the profit equation P(q)?<BR>\n" );
document.write( "c) How many units must be sold to make a profit of $250,000? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #77483 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=77483\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> C(q) = 0.52 q + 30,000. They can sell each unit for 0.80cents<BR>\n" );
document.write( "a) what are the two parameters of the cost equation<BR>\n" );
document.write( "Startup cost is $30,000<BR>\n" );
document.write( "Cost of producing each unit is 52 cents or $0.52<BR>\n" );
document.write( "----------------------------<BR>\n" );
document.write( "b) what is the profit equation P(q)?<BR>\n" );
document.write( "Income function: I(q)=0.80q<BR>\n" );
document.write( "Profit function: P(q)=I(q)-C(q)<BR>\n" );
document.write( "P(q)= 0.80q-(0.52q+30000)<BR>\n" );
document.write( "P(q)= 0.28q - 30,000<BR>\n" );
document.write( "c) How many units must be sold to make a profit of $250,000?<BR>\n" );
document.write( "250,000 = 0.28q - 30,000<BR>\n" );
document.write( "0.28q = 280,000<BR>\n" );
document.write( "q = 1,000,000<BR>\n" );
document.write( "----------------<BR>\n" );
document.write( "More than one million units must be sold to make a profit.<BR>\n" );
document.write( "================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );