Question

-/16.66 points TEAFM2 1.2.020. My Notes Ask Your Teacher A baker will supply 17 jumbo cinnamon rolls to a cafe at a price of $3.84 each. If she is offered $3.24, then she will supply 4 fewer rolls to the cafe. The cafe's demand for Jumbo cinnamon rolls is given by P D ) 0.02X +39.99. What is the equilibrium point? rolls at a price of $ cach Additional Materials took -/16.66 points TEAFM2 1.2.024. My Notes Ask Your Teacher It is estimated that at a large fertilizer plant the fixed costs are $269,144 and the cost to produce each ton of fertilizer is $189.11. The plant sells its fertilizer at $447.89 per ton. Find the break-even quantity. (Round your answer to one decimal place.) tons Additional Materials eBook

Answer 1

Solution Demand Equation 3) p = P(x)= -0.62x+8.99 we have to make supply equation with the information givent 17 rolls @$3.84 each (17-4)=13 rolls @ $3.24 each we will form a linear supply equation with these value for that we need to calculate slopes Slope (m) - 3.84 - 3.24 0.60 0.15 Cabb sox] 79-13" - v . 0.15 Capp oox) Now, the equation ist (y- 3.84) = m (3-17) .y-3.64 = 0.015 (x-1). So, y = 0.155 +3.84 - 8.55.: y = 0.158 + 1.29 So, supply equation is scx) = P = 0.158 +1.29

Now in order to find equillibrum point, we have to equate demand equation and supply equation 0.152 +1.895-0.622 + 8.99 0.15+0.622 = 8.99-1.29 0.77% = 7.7 22 lo colle And p=0.150+1.29 2015110)+1.89 = $2.79 per soll .

Solution Fixed costa $269,144 lost of producing each ton of fertilizer (variable lost) - $189111 Selling Price per unit = $447.89 Break even Point (in units) = fixed cost selling price per unit- vawable lost per unit z $269,144 $447.89-$189.11 $269,144 $258.78 = 1040 tons (approx),