Question
As Sales Manager for ISeeYou Productions, you are planning to review the prices you charge clients for television advertisement development. You currently charge each client
As Sales Manager for ISeeYou Productions, you are planning to review the prices you charge clients for television advertisement development. You currently charge each client a development fee of $12,400. With this pricing structure, ISeeYou is able to sign 11 contracts per month. This is down from 25 contracts, which was the figure last year when your company charged each client only $6,800.
(a) Construct a linear function that yields the development fee p that ISeeYou should charge in order to sign q contracts per month.
p(q) = |
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(b) Find the total revenue R ISeeYou obtains by signing q contracts.
R(q) = |
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(c) The costs to ISeeYou Productions are estimated as follows:
Fixed costs: | $49,000 per month |
Variable costs: | 1,400q dollars (when q contracts are signed) |
Express ISeeYou Productions' monthly cost as a function of the number q of contracts.
C(q) = |
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(d) Express ISeeYou Productions' monthly profit as a function of the number q of contracts.
P(q) = |
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(e) How many contracts could ISeeYou sign to break even? (Enter the lower value first.) ISeeYou breaks even when they sign________ or ____________ contracts.
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