PERFORMANCE TASK 4 : The Business Proposal

Introduction:

As a research analyst, I have explored the average cost function for products in three
potential new business ventures. This presentation will provide an overview of the
findings, including data, graphs, equations, and analysis of the domain, range, and
asymptotes for each venture.

Business Venture 1: Handmade Jewelry

Table of Values:

Product Average Cost

1 $10.00

5 $8.25

10 $7.50

15 $7.00

20 $6.80

Graph:
Equation:

❑
y = -0.05 x 2 + 1.75 x + 8.75

Domain and Range:

● Domain: All non-negative real numbers (x ≥ 0), as production cannot be negative.

● Range: All real numbers greater than or equal to $6.80 (y ≥ $6.80), as the average cost
cannot be negative.

Asymptotes:

This function has a horizontal asymptote at y = $6.80 as the number of products

approaches infinity. This suggests the average cost will eventually stabilize at this level
as production increases.

Business Venture 2: Homemade Dog Treats

Table of Values:
 Product Average Cost

1 $25,000

5 $20,000

10 $16,000

15 $14,000

20 $13,000

Graph:

Equation:

y = -0.1 x 2 + 5 x❑ + 23.75

Domain and Range:

● Domain: All non-negative real numbers (x ≥ 0), as production cannot be negative.

● Range: All real numbers greater than or equal to $13,000 (y ≥ $13,000), as the average
cost cannot be negative.

Asymptotes:

This function has a horizontal asymptote at y = $13,000 as the number of products

approaches infinity. This suggests the average cost will eventually stabilize at this level
as production becomes more efficient.
Business Venture 3: Organic Soap

Table of Values:

Product Average Cost

1 $8.50

5 $6.00

10 $5.00

15 $4.75

20 $4.50

Graph:

Equation:

y = -0.025 x 2 + 1.5 x❑ + 7.25

Domain and Range:

● Domain: All non-negative real numbers (x ≥ 0), as production cannot be negative.

 ● Range: All real numbers greater than or equal to $4.50 (y ≥ $4.50), as the average cost
cannot be negative.

Asymptotes:

This function has a horizontal asymptote at y = $4.50 as the number of soaps produced
approaches infinity. This indicates the average cost will eventually stabilize at this level
due to economies of scale.

Conclusion:

Based on the preliminary analysis, Business Venture 3: Organic Soap appears to have
the most attractive average cost function. This is due to its:

● Lowest average cost: The average cost for soap production remains below the
other ventures throughout most of the production range.
● Stable long-term cost: The horizontal asymptote at a lower cost suggests efficient
production and stable profit margins.