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Question: a manufacturer sells each article he produces for 157 but...

Question details

A manufacturer sells each article he produces for $157, but out of this, he has to pay fixed costs of $5000 per year.

 

     a)   i)     Copy and complete the table of values below showing the manufacturer’s

                   income I, corresponding to the production of N articles per year, for values

                   of N from 0 to 150. (Note: Income, I = total sales minus fixed costs)

 

N

0

75

150

I

 

 

 

 

  ii)    Construct a graph (on the graph paper provided) showing the manufacturer’s  income, I, for values of N from 0 to 150.

     

             b)     Use your graph to estimate the:

                i)  income for a production of 90 articles per year

                     ii)  minimum number of articles that must be produced to cover fixed costs

             iii)  number of articles that need to be produced to achieve an annual income

of $10 000

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