Fixed Cost

Variable Cost
Total Cost = Fixed Cost + Variable Cost
Revenue
Profit = Revenue - Total Cost

i.

let x = number of students

a.
FC
300 + 75
VC
5x

ii.

revenue = 20x

375 + 5x
20x - ( 375 + 5x )
20x - 5x - 375
15x - 375 >= 0

b.
let y = price

revenue = yx

15x >= 375

x >= 375 / 15

25

c. Profit
900

Profit = yx - ( 375 + 5x )

800
700

x
0
5
10
15
20
25
30
35
40

Rev
0
100
200
300
400
500
600
700
800

TC
375
400
425
450
475
500
525
550
575

600
500
400
300
200
100
0
0

10

15

20

25

Rev
TC

25

30

35

40

Fixed Cost
Variable Cost
Total Cost = Fixed Cost + Variable Cost
Revenue
Profit = Revenue - Total Cost
1.b

let x = number of persons

i.

a.

TC = FC + VC
FC
1000 + 10000 = 11000
VC
60 x

TC

11000 + 60x

b.

Rev = 250x

c.

Profit = Revenue - Total cost

250 x - ( 11000 + 60 x )
250 x - 60 x - 11000

190 x - 11000

ii.

190 x - 11000 > = 0

190x >= 11000
x >= 11000 / 190
x >=
57.89

58

iii.

190x - 11000 >= 1000

190x >= 11000 + 1000
190x >= 12000
x >= 12000 / 190
x >=

63.16

64

1000 + 1000

Minimize, C = 3 X + 9 Y
Subject to
2X + Y <= 40
2X + 4Y >= 100
X, Y >= 0

Constraint 1
Constraint 2 2

i.

2X + Y <= 40
2X + 4Y >= 100

C1

C2

0
5
10
15
20
25
30
35
40
45
50
55
60
65
70

40
30
20
10
0
-10
-20
-30
-40
-50
-60
-70
-80
-90
-100

25
22.5
20
17.5
15
12.5
10
7.5
5
2.5
0
-2.5
-5
-7.5
-10

The points ( 0, 25 ), ( 0, 40 ), ( 10, 20 )

ii.

C=3X+9Y

60

25

225

40

360

10

20

210

60
40
20
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70
-20

C1

-40

C2

-60
-80
-100
-120

board
BC
3
SC
2
available
60

time

i.

Constraint 1
Constraint 2
Profit = 12x + 20y
x >= 8

3x + 2y <=60
4x + y <=72

ii.

x, y >=0

x
y

C1

C2

0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
32
34
36
38
40
42
44
46
48
50

30
27
24
21
18
15
12
9
6
3
0
-3
-6
-9
-12
-15
-18
-21
-24
-27
-30
-33
-36
-39
-42
-45

72
64
56
48
40
32
24
16
8
0
-8
-16
-24
-32
-40
-48
-56
-64
-72
-80
-88
-96
-104
-112
-120
-128

52
54
56
58
60
62

-48
-51
-54
-57
-60
-63

-136
-144
-152
-160
-168
-176

4
1
72

y = (60 - 3x ) / 2
y = 72 - 4x

100
50
0
0

8 12 16 20 24 28 32 36 40 44 48 52 56

-50
-100
-150
-200
-250

Corner Points
( 8, 0 ), ( 8, 18 ), ( 18, 0 ), ( 16.8, 4.8 )

Profit

8
8
18
16.8

0
18
0
4.8

96
456
216
297.6

456

64
66
68
70
72

-66
-69
-72
-75
-78

-184
-192
-200
-208
-216

56 60 64 68 72
C1
C2