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The table below contains price-demand and total cost data for the production of treadmills, where p is the wholesale price (in dollars) of a treadmill

The table below contains price-demand and total cost data for the production of treadmills, where p is the wholesale price (in dollars) of a treadmill for an annual demand of x treadmills, and C is the total cost (in dollars) of producing x treadmills.

x

p ($)

C ($)

2,910 1,450 3,634,000
3,415 1,275 3,782,000
4,645 1,123 4,185,000
5,330 918 4,290,000

Use this data to find a linear regression equation for price-demand data, using x as the independent variable:

p=ax+b,

where a is rounded to 1 decimal place and b is rounded to the nearest integer.

Use this data to find a linear regression model for the cost data, using x as the independent variable:

C(x)=cx+d,

where c is rounded to the nearest integer and d is rounded to the nearest 10,000.

1.) Estimate the fixed costs. Round to the nearest $10,000.

$ ___________

2.) Estimate the variable cost per treadmill. Round to the nearest dollar.

$ per treadmill produced

3.) There are two break-even points. Find the smaller production level where the company breaks even. Round to the nearest treadmill.

treadmills

4.) There are two break-even points. Find the larger production level where the company breaks even. Round to the nearest treadmill.

treadmills

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