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Modeling Costs for the General Store

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Question;Modeling;Costs for the General Store;1.;Remember the form of a quadratic function equation: y = f(x) = ax2 +;bx + c;2.;You will use: W(x) = -0.1x2 + bx + c where (-0.1x2 + bx);represents the store's variable costs and c is the store's fixed costs.;3.;Choose a value between 10 and 20 for b, that value does not have to be a whole;number.;4.;So, W(x)is the store's total monthly costs based on the number of items;sold, x.;5.;Think about what the variable and fixed costs might be for your fictitious;storefront business - and be creative. Start by choosing a fixed cost, c;between $5,000 and $10,000, according to the following class chart (make sure;the combination of your b and your c do not match exactly any of your;classmates');If;your last name starts with the letter;Choose;a fixed cost between;A?E;$5,000?$5,700;F?I;$5,800?$6,400;J?L;$6,500?$7,100;M?O;$7,200?$7,800;P?R;$7,800?$8,500;S?T;$8,600?$9,200;U?Z;$9,300?$10,000;6.;Post your chosen c value in your subject line, so your classmates can;easily scan the discussion thread and try to avoid duplicating your cvalue.;(Different c values make for more discussion.);7.;Your monthly cost is then, W = -0.1x2 + bx + c.;8.;Substitute the c value chosen in the previous step to complete your;unique equation predicting your monthly costs.;9.;Next, choose two values of x (number of items sold) between 50 and 100. Again;try to choose different values from classmates.;10.;Plug these values into your model for W and evaluate the monthly business costs;given that sales volume.;11.;Discuss results of these cost calculations and how these calculations could;influence business decisions.;12.;Is there a maximum cost for your General Store? If so, how many units must be;sold to produce the maximum cost, and what is that maximum cost? How would;knowing the number of items sold that produces the maximum cost help you to run;your General Store more efficiently?

 

Paper#54906 | Written in 18-Jul-2015

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