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Numbers R Us is considering adding a new calculator model to their product line, the NRU-42. Numbers R Us has determined that if they manufacture
Numbers R Us is considering adding a new calculator model to their product line, the NRU-42. Numbers R Us has determined that if they manufacture 1500 of the new NRU-42 model, it will cost them $74,000. It will cost $113,000 to make 3000 calculators. a. Using this information, find the linear cost function for the new calculator. Show your work. b. Numbers R Us has hired a consultant to forecast their revenue. (because Numbers will sell directly to schools under complicated contract pricing, revenue is not just quantity sold times price). The consultant has provided Numbers R Us with the Revenue forecast below: () = . . . Sketch the graph for the Cost function you found in part (a) onto the same graph as the Revenue equation below. c. From the graph in part b, what is/are the break-even point(s) for this model? d. What quantity of calculators will maximize profit? What is that profit
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