Answers by visitors named: Clem

Given cost function C= 0.025x^2 +13x+100 Each unit is sold for ksh 20. Hence revenue function , R= 20x Where, X is the no. Of products A) to ensure there is no loss, the cost function should be equal to revenue function. That is 0.025x^2+ 13x + 100 = 20x 0.025x^2 + 13x -20x +100 =0 0.025x^2 - 7x +100= 0 Dividing the equation by 0.025 x^2 -(7/0.025) x + 100 /0.025 = 0 x^2 - 280x + 4000 = 0 By solving using the formula x = (-b +- √(b^2 - 4ac))/2a Where a= , b= -280 , c= 4000 we get x= 265 , 15 To ensure no loss 265 is selected. Hence minimum 265 unit should be produced to ensure there is no loss occur. B) selling price is incresed by 45% Hence new selling price = 20+ 20*45/100 = 20+ 9 = 29 Hence revenue function = 29x To ensure no loss = . 025x^2 + 13x + 100 = 29x Tht is 0.025x^2 +13x +100-29x =0 0.025x^2 -16x + 1000=0 By dividing throughout by 0.025 x^2 - 640x + 4000= 0 by solving With a=1 , b= -640 and c= 4000 We get x = 634 , 6. To ensure no loss 634 is selected. Hence to ensure no loss production level should be 634 products