a)
if A = B then
5x/(3x-3) = 8x/(3x-1)
24x^2 - 24x = 15x^2 - 5x
9x^2 - 19x = 0
x(9x - 19) = 0
x = 0 , reject since no sales is not an option
or
x = 19/9 thousands = appr 2111
at 2111 sales, the ratios would be the same
b) sub x = 30000 into each ratio to see which gives the higher value
c) what do you think??
The net profit margin ratio for two companies is modelled by 5x/3x-3 for company A and by 8x/3x-1 for company B, where x is the number of items sold in thousands. Sam is trying to decide in which company he should buy stocks, so he is going to compare the ratios. He has researched both companies, and he know that each provides over 25000 items per month.
a) Would the two companies ever have the same ratio, and is so, at what levels of sales?
b) Which company has a high ratio for 30 000 items sold? Find the two ratios for both companies to the nearest thousand of a unit.
c) which company should he invest in if he wants to go with the company that he has a higher ratio most of the time?
1 answer
1 answer