Question 551242: a semi-conductor manufacturer seeks to maximize it's pprofits. testing indicates that they can produce 100,000 chips per week at a cost of $40 a chip, and sell them for $65 a chip. they also find that they can produce 125,000 chips per week at a cost of $35 per chip and sell them for $63 a chip. how much profit can they expect to earn if they produce 130,000 chips per week? I have a really hard time with word problems and need some help.
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! a semi-conductor manufacturer seeks to maximize it's profits. testing indicates that they can produce 100,000 chips per week at a cost of $40 a chip, and sell them for $65 a chip. they also find that they can produce 125,000 chips per week at a cost of $35 per chip and sell them for $63 a chip. how much profit can they expect to earn if they produce 130,000 chips per week?
Find the profits
at 100,000: 65 - 40 = $25 per chip
at 125,000: 63 - 35 = $28 per chip
:
Assign the values as follows
x1=100000; y1=25
x2=125000; y2=28
Find the slope
m =  =  = .00012
:
Find the equation using the point/slope formula; y - y1 = m(x - x1)
y - 25 = .00012(x - 100000)
y - 25 = .00012x - 12
y = .00012x - 12 + 25
y = .00012x + 13
:
"how much profit can they expect to earn if they produce 130,000 chips per week?"
Replace x with 130000
y = .00012(130000) + 13
y = 15.6 + 13
y = $28.60 profit when 130,000 chips are made
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