Assume that costs and expenses for Continental Divide Mining can be modeled by
C(t) = - 0.012t2 + 0.492t + 0.725
where t is the number of years past 2003.
(a) Use R(t) as given in Problem 20 and form the profit function (as a function of time).
(b) Use the function from (a) to find the year in which maximum profit occurs.
(c) Graph the profit function from (a) and the data points from the table.
(d) Through the decade from 2011 to 2021, does the function project increasing or decreasing profits? Do the data support this trend (as far as it goes)?
(e) How might management respond to this kind of projection?
The data in the table give sales revenues and costs and expenses for Continental Divide Mining for various years. Use this table in Problems.

Transcribed Image Text:

Costs and Expenses (millions) Sales Revenue Year (millions) $2.6155 $2.4105 2006 2.4412 2007 2.7474 2008 2.934 2.6378 2.9447 2009 3.3131 2010 3.9769 3.5344 3.8171 2011 4.5494 2012 4.8949 4.2587 2013 5.1686 4.8769 2014 4.9593 4.9088 4.6771 2015 5.0913 4.9025 2016 4.7489