Reference no: EM132386992
Assignment
Please solve the following problems as instructed.
1. (Solve by Factoring or Quadratic Formula) A cell phone company has the following cost and revenue functions: C(Q) = 8Q2 - 600Q + 21,500 and R(Q) = -3Q2 + 480Q. Using MS-Excel, what is the range of cell phones they should produce each day so there is profit? round to the nearest number that generates profit. Explain why there are two output levels for break even.
2. (Must use MS-Excel) A laptop company has discovered their cost and revenue functions for each day: C(Q) = 3Q2 - 10Q + 200 and R(Q) = -2Q2 + 100Q + 50. If they want to make a profit, what is the range of laptops (Q) per day that they should produce? Round to the nearest number which could generate profit.
3. Abercrombie and Fitch stock had a price given as P = 0.2t2 - 5.6t + 50.2, where t is the time in months from 1999 to 2001. (t = 1 is January 1999). Use MS-Excel to find the two months in which the price of the stock was $31 or $30.
4. The cost function for a certain company is C (Q) = 60Q + 300 and the revenue is given by R = 100Q - 0.5Q2. Recall that profit is Revenue R(Q) minus cost C(Q)è R(Q) - C(Q).
a. Set up a quadratic equation and
b. Solve the quadratic equation to find the breakeven output (Q).
c. What does the second breakeven point indicate?
d. Is that the output level that maximizes profit for the company?
e. If not, at what output level (Q) will the company's profit be a maximum?
f. Use MS-Excel to find two values of Q (production level) that will create a profit of $300