(See Solution) A small manufacturer produces parts for the aircraft industry . For a particular part, the fixed costs which includes setting up the machines
Question: A small manufacturer produces parts for the aircraft industry . For a particular part, the fixed costs which includes setting up the machines are $17500. The material and labor costs are $25.50 per part. The owners of the factory charge $50.75 for each part. Suppose \[x\] denotes the number of brochures produced and sold. Find the following.
- A linear function which calculates the cost of producing \[x\] parts. (7 points)
- A linear function which calculates the revenue realized from the sale of \[x\] parts. (7 points)
- Use a) and b) to find the linear profit function for this product. (7 points)
- What is the profit or loss realized from the sale of 750 parts? (5 points)
- What is the break-even point for this product? (7 points)
- Suppose an aircraft manufacturer wants a discount on an order of 765 parts. What must the part manufacturer charge at a minimum to break even on an order of 765 parts? (7 points)
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