Question 169289
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So we need to know the {{{cost?}}} and {{{selling?}}} for 130,000 chips then.
Via the data given, we need to do INTERPOLATION to find the 2 unknowns.
.
First, we'll get the {{{cost}}}.
Let {{{x=cost}}} for 130,000 chips:
Based on Given--->{{{system(100000=40,125000=35,130000=x)}}}
By Interpolation: {{{(100000-125000)/(100000-130000)=(40-35)/(40-x)}}}
{{{-25000/-30000=5/(40-x)}}}, cross multiply
{{{-1000000+25000x=-150000}}}
{{{25000x=1000000-150000=850000}}}
{{{cross(25000)x/cross(25000)=cross(850000)34/cross(25000)}}}
{{{x}}}=$34.00/ea, cost
.
Next for the {{{Selling}}} price of 130,000 chips based on cost=$34.00/ea:
Based on Selling Price Given on other Quantities produced, let {{{y=Selling}}}.
By Interpolation --->{{{system(40=65,35=63,highlight(34)=y)}}}
{{{(40-35)/(40-34)=(65-63)/(65-y)}}}
{{{5/6=2/(65-y)}}}, cross multiply
{{{6*2=5(65-y)}}}
{{{12=325-5y}}}
{{{5y=325-12=313}}} ----> {{{cross(5)y/cross(5)=cross(313)62.60/cross(5)}}}
{{{y}}}=$62.60/ea, Selling
.
For the {{{Profit=Total Selling-TotalCost}}}, working eqn
{{{TotalSelling=62.60(130000)}}}=$8,138,000.00
{{{TotalCost=34.00(130000)}}}=$4,420,000.00
Then Via working eqn,
{{{Profit=8138000-4420000}}}
{{{highlight(Profit)}}}=$3,718,000.00 ---> Answer
Thank you,
Jojo</pre>