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Save on Textbooks! Other   Other Homework Help ( 1213 ) Math   Math- Algebra 1 ( 2437 )   Math- Algebra 2 ( 1189 )   Math- Calculus ( 381 )   Math- Geometry ( 594 )   Math- Other ( 1522 )   Math- Precalculus ( 408 )   Math- Trigonometry ( 285 ) Biology   Biology- Animal ( 155 )   Biology- Cell ( 530 )   Biology- Ecological ( 109 )   Biology- General ( 651 )   Biology- Microbiology ( 100 ) Business   Business- Accounting ( 674 )   Business- Finance ( 511 )   Business- Other ( 454 ) Chemistry   Chemistry- Biochem ( 162 )   Chemistry- Organic ( 166 )   Chemistry- Other ( 1330 ) Economics   Economics- Macroeconomics ( 829 )   Economics- Microeconomics ( 610 ) Essay Service   Essay Correction ( 96 )   Essay Writing ( 396 ) History   History- World ( 831 )   US History- Post 1877 ( 472 )   US History- Pre 1877 ( 347 ) Language   English ( 829 )   Foreign Languages ( 118 )   World Literature ( 196 ) Physics   Physics- Electricity, Magnetism ( 248 )   Physics- General ( 1736 )   Physics- Mechanical, Heat, Sound ( 343 )   Physics- Wave, Quantum Physics ( 114 ) z Medical Questions Your Question Inflation Total monthly costs, in dollars, to produce x units ( 1unit is 100 capsules): C(x)= 15000 +10x 15000 + 10x + .001(x-11000)^2 Sales: 10000 units per month and growing at 1.25% per month, compounded continuously Selling Price: $34 per unit Inflation: Approximately .25% per month, compounded continuously, affecting both total costs and selling price Company owners are pleased with the sales growth but are concerned about the projected increase in variable costs when production levels excel 11000 units per month. The consensus is that improvements eventually can be made that will reduce costs at higher production levels, thus altering the current cost function models. To plan properly for these changes, Hollingsworth Pharm. Would like you to determine when the company’s profits will begin to decrease. To help you determine this, answer the following: 1. If inflation is assumed to be compounded continuously, the selling price and total costs must be multiplied by the factor e^.0025t. In addition, if sales growth is assumed to be compounded continuously, then sales must be multiplied by a factor of the form e^rt. Where r is the monthly sales growth rate (expressed as a decimal) and t is time in months. Use these factors to write each of the following as a function of time t: a) selling price p per unit (including inflation) 34(X)e^.0025t b) number of units x sold per month (including sales) (X)e^.01252t c) total revenue (recall that R = px) (34Xe^.0025t)(Xe^.0125t) 2. Determine how many months it will be before monthly sales exceed 11,000 units (34(11,000)e^.0025t)((11,000)e^.0025t) 3. C(x) can be re written as C(x) = 136000 – 12x + .001x^2 Use this form with your result from Question 1(b) and with the inflationary factor e^.0025t to express these total costs as a function of time. Please Login to Answer the Question LOGIN

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