SOLUTION: Gatorade/Tropicana North America, a subsidiary of PepsiCo, produces fruit juices and other flavored beverages. Based on data from 1999 to 2001, the net sales (revenue) of Gatorade/
Question 826510: Gatorade/Tropicana North America, a subsidiary of PepsiCo, produces fruit juices and other flavored beverages. Based on data from 1999 to 2001, the net sales (revenue) of Gatorade/Tropicana North America may be modeled by
R(t) = -107t2+496t+3452 million dollars
and the operating profit (earnings before interest and taxes) may be modeled by
P(t) = −18.5t2 + 85.5t + 433 million dollars
- where t is the number of years since 1999. (Source: Modeled from 2001 PepsiCo Annual Report, p.44.)
6. Profit = Revenue – Costs. Find an expression representing the costs for this time period.
7. What was the revenue in 2000? (Years since 1999 = 1.)
8. What was the profit in 2000?
9. Use the equation found in question 6 to find the costs in 2000.
10. R and P were calculated in problems 7 and 8. Use these results to find C. How does this value compare with the result of problem 9?