Question
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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