(a) Bob wants to open a new fast food shop. He estimates he needs to spend at least $102,000 on renovation and buying commercial kitchen appliances. The average running cost per customer (for food, staff salary, etc.) is $8. Each customer spends $15 on average.

(i) If the number of customers is n, write down the cost function and revenue function as functions of n. (1 mark)

(ii) Determine the minimum number of customers for the business to breakeven. (1 mark)

(iii) Bob has to borrow $102,000 from a bank with interest rate of 3% p.a. with interest payable monthly. If Bob does not repay a single cent, how much does Bob owe the bank after 3 years? (1 mark)

(b) (i) A baker has found that the number of muffins he/she sells, q, depends on the price, $p, of his/her muffins as = 12 . Each muffin costs the baker $3 to produce. Write down the expression for profit in terms of p. (2 marks)

(ii) What price should the baker charge per muffin in order to maximise profit? (1 mark)