1. Extension Exercise Signing the Best Contract Suppose that Megan wrote a romance novel during her last year in school and two publishers extend her offers to sign the manuscript for publication Company A offers her a 10.000 sign- on bonus and 15% of the book's total sales. Company B offers her a $5,000 sign-on bonus and 18% of the book's total sales. Assuming both companies would spend about the same amount on advertising and promoting the book, which publisher should she sign with! Construct a tble that shows Megan's book income function of total sales Total Sales (S) Income from Company A (5) Income from Company B (5) SO $10,000 5 000 25.000 137.50 9 500 50.000 $17.500 14000 75.000 21 2 50 18500 100.000 $ 25,000 23.000 125.000 $ 28 150 27.500 150,000 $32.500 32 000 175.000 $36 250 36 500 20.000 $40 000 41000 1. Describe the paliers in the incomes from Companies A and B as total sales increase As total sales increase, income from each company increases. but company income from company B increase fastly, as compare to company A c. Plot the income from Company A as a function of sales. connect the points with a straight line, and label it A. On the same graph. plot the income from Company B as a function of sales, connect the points with a straight line, and label it B. Income ($) 45 35 30 25 20 15 10 5 Sales (5) 1. Extension Exercise Signing the Best Contract Suppose that Megan wrote a romance novel during her last year in school and two publishers extend her offers to sign the manuscript for publication Company A offers her a 10.000 sign- on bonus and 15% of the book's total sales. Company B offers her a $5,000 sign-on bonus and 18% of the book's total sales. Assuming both companies would spend about the same amount on advertising and promoting the book, which publisher should she sign with! Construct a tble that shows Megan's book income function of total sales Total Sales (S) Income from Company A (5) Income from Company B (5) SO $10,000 5 000 25.000 137.50 9 500 50.000 $17.500 14000 75.000 21 2 50 18500 100.000 $ 25,000 23.000 125.000 $ 28 150 27.500 150,000 $32.500 32 000 175.000 $36 250 36 500 20.000 $40 000 41000 1. Describe the paliers in the incomes from Companies A and B as total sales increase As total sales increase, income from each company increases. but company income from company B increase fastly, as compare to company A c. Plot the income from Company A as a function of sales. connect the points with a straight line, and label it A. On the same graph. plot the income from Company B as a function of sales, connect the points with a straight line, and label it B. Income ($) 45 35 30 25 20 15 10 5 Sales
