LINEAR EQUATIONS AND FUNCTIONS = 1.1 INTRODUCTION. in this chapter, we will consider in some detail the algebra and geometry of linear — “equations and functions in two variables, (that is, equations and functions whose graphs in a coordinate plane are steaight lines). Lit equations are equations whose term minus, and equal signs) are a.constant, or the first power. ‘Thus, is a linear equation because it consists of the constant 7, the term 2.x (which is the constant 2 times x to the first power), and —3y, which is also a term consisting of a constant times one variable to the first power. From this example, it should be clear that the general form of a linear equation is Act By=C where A, B, and C are constants with A and B not bx i 2, oth zero. Linear equations appear in other forms. For example, Cee i! yar +3 and rye feted are linear equations. On the other hand. ray” 6 ‘Scanned with CamScanner‘QUAPTER 1 UNEAR EQUATIONS AND FUNCTIONS v7 is a constant times the product of two variables. Also, byt oe 16 is not linear because of the presence of the second-power term, x7. Linear equations arise frequently in applied situations. ‘ample. Taxi fare from an airport to a nearby city is $1.25 per mile drivén, plus $0.75 for a bridge toll. Let y represent the fare and x the number of miles driven on one trip, and write the equation for y in terms of x. Find the fare if the distance from the airport to the city is 22 miles. The total fare will be Fare = (1.25)(number of miles driven) + 0.75 or, using the specified symbols, “y= 1.25x + 0.75 which is a linear equation. When the distance traveled is 22 oy = 1.25022) + 0.75 s, the fare is — Exercise. re from an airport to a nearby $0.80 per mile driven, plus $2 for tolls. Let y represent the fare and x the iniles driven on one trip. Write the equation for y in terms of x, Find the fare when the distance driven is 17 miles Answer: on ‘The equations of the last example and exercise, y = 1.25x + 0.75 and y = 0.80x + 2, are linear equations in the two variables x and y. ‘These equations have graphs that are straight lines. To graph a straight line, you will recall that we need only to [2 9roph o straight line fir have the coordinates of two of its points (since there is precisely one line that can be drawn between two given points)." It does not matter which two points on the (8 line are chosen, so we may arbitrarily select two values for x and obtain the Fe oe corresponding values for y. For example, in i a 1.25x + 0.75, "See AZM ‘Scanned with CamScanner18 PART | LINEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION if we choose x = 1, then y = 1.251) + 0.75 = 1.25 + 0.75 = $2, and we have the point x = 1, y = 2, which is designated in the conventional form (x, y) as (1, 2). Again, choosing, say, x = 5, we find = 1.25(5) + 0.75 = 6.25 + 0.75 = $7, and we have the point x = 5, y = 7, or (5, 7). Plotting (1, 2) and (5, 7) as points, then drawing a line through them, leads to Figure 1-1. Note that since the distance traveled must be nonnegative (ie., « 2 0), the graph is drawn only in the first quadrant. The accompanying Figure 1-2 shows the graph of y = 0.80x + 2. ~ Exercise. Verify the points shown in Figure 1-2. Answer: In y = 0.80x + 2, if we choose x = 0, then y = 2, and if we choose.x = 5, then FIGURE 1-1 FIGURE 1-2 » Cabfare y Cabfare Line 2 6 ve 12seors Y=ORO. +2 ‘Scanned with CamScannerCHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS “FROM THEORY TO PRACTICE Calculators, Grophing Calculators, ond Computer Algebra Systems ‘There is currently a strong trend toward incorporating technology into the teaching of mathematics. Electronic tools include basic calculators, programmable calculators, graphing calculators, and computer algebra systems (CAS). The effective use of this technology allows the individual to focus more on applications, problem formulation, and the interpretation of numerical and graphical results. ‘There is no need to flip through extensive tables (such as logarithms, exponentials, and interest) when all relevant computations can be done more efficiently on an inexpensive calculator. Wherever applicable, we will illustrate in the textbook how and when calculators can be appropriately used. We will also indicate where pro- grammable calculators can enhance the solution process. This will allow us to con- centrate more on problem formulation and problem solving rather than on the some- times tedious mechanics which often confuse the issue and discourage people. ‘The advent of graphing calculators has added another dimension. Visual displays of equations and functions such as those in Figures 1-1 and 1-2 can easily be repro- duced. Not only can we generate both numerical and graphical analyses of a problem, but we can do them at one and the same time in the palm of our hands. In addition, CAS technology is rapidly becoming available on microcomputers. This further en- hances the problem-solving approach by expanding and extending the approach of the programmable and graphing calculators to more powerful, easy to use tools. Quick analysis of what if questions becomes readily available, and we can handle more complex problems with little, if any, additional effort. Lastly, many problem-solving situations also lend themselves to solution by rel- atively small and easy computer programs. Examples of these written in QBasic will be provided at appropriate points in the textbook. ‘The relationship between y and x expressed by y = 1.25x + 0.75 is called a | Sa i ee only one, co y. Notice that the expression states what y is. ) in terms of x, and we connote this by saying y is a function of x; of course, this is a linear function. If we write _y = an expression involving x and constants, W = Linear Functions 1180 fonon of x means 1 telationship expressing of oa ‘Scanned with CamScanner20 Theat is peed oe ‘nis. The dependent variable ‘is plotted on the vertical PART 1 LINEAR RELATIONSHIPS AND CORSTRAINED OPTIMIZATION pallet nels variable and is plotted on the horizontal axis. The value cis upon what value we assign to x, and soy is called the Repesidest 1 is plotted on the vertical axis. Thus, when we plot points, Ty be chosen independently, but the corresponding values of y depen vir tho values chosen for x. Later in the text we will encounter situations where an expression has several leters, and. we will want to be able. to specify which is the independent variable. This is done by writing the independent variable as a function of the dependent variable denoted hy y = f(x), read y equals f of x. Thus, in our example, denoted by fe) = 1.25x + 0.75. The need fer identification of the independent variable can be seen if we write yak + It is impossible to treat this as a linear function because it is not clear which of the letters on the sight is the independent variable. However, writing ae specifies that p is th endent variable and, therefore, k and m are to be con sidered as | nts. In this chapter, the identity of the independent variable be clear from the context, so we will use the parenthetical specification only in certain circumstances. However, independent variable, dependent variable, and linear funetion are phrases that should be a part of our vocabulary. In summary, then, linear functions have the form where «is the independent veriable, y is the dependent variable, and m and b are constants. Returning to Figures 1-1 and 1-2, observe that both lines slant upward to the right, but th on the lef , ie tts eect change 01 rt tio of vertical t i: a numerous applied interpretations and so is discussed next. cama 1.2 SLOPE ——S Vestal change Sip Horizontal change ae eee The steepness of a ski slope, the pitch of a roof, path of a descending a ih the >Pe, the pitch of a roof, and the steepness of the glide path of descending airplane all re associated with the mathematical concept of ihe slope of 2 sesight tine oF line segment. Numerically, the slope of « ancien fine is the ae a straight or fall) i between two points on the line, where the rise or fall i horizontal change (run) the run is the horizontal separation of the two point vertical separation and the segment AB is the rat Points. In Figure 1-3, the slope of Slope = —VEttical change (rise) horizontal change (run) = 3 = 3- ‘Scanned with CamScanner(CHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS 6= Vertical change (rise) Q(-6,2) 2,2) o> 2.5 orizontal change (run) A et) H3,-3) ° © E(l,-3) © D75,-3) ° G4, 6) e €2.5,-7) Clearly, the vertical change is the difference in the y-coordinates of the endpoints of the line segment, while the horizontal change is the difference in the end, Ss” x-coordinates, We use the standard subscript notation to designate particular points: that is, GW which is read as -- Hence the slope r ‘of a straight line or line segment joining the points (x1, yy) and (x2. y2) is gsi etn Difference a, eat | Consider the segment CD connecting the points (2.5, 7) and (7.5, —3) in Figure 1-3: . Rise | -3 - (=) _ : a NX a FIGURE 1-3 ‘Scanned with CamScanner\ PARTI LINEAR RELATIONSHIPS AND ‘CONSTRAINED ‘OPTIMIZATION i AB ise to the right, such as AB- Fae a isis done by observing i KL. Thi: in Figure 1-3, and those that fall to t the right, such as KL. eatihse ar es ti ‘I upwar 2 right have positive slope numbers 2 : ill ing tive slope numbers. Thi: requirement wil oot ea the same point as the starting point (x1, ¥1) el ores the rise or fall and the run, For example, the slope of oc hea ae ea a, computed above to be 0.8 by starting with point C as (x,y) for ah ie the nin, is also 0.8 if we designate point D as (x1, y1) for both the ris It is important to distinguish between se tun. Thus, ae aT =) 0.8. wee Sar T Sea = Erertise. See Figure 1~3. Verify that the slopes of KL and GH are; respectivé rime Returning to Figure 1-3, observe the horizontal segment QJ. If we substitute its coordinates into the slope formula we find mo eee 6) 80 the slope is zero. since if we were to pick any two points on a horizontal segment, their coordinates would be an) we ca 4 i owt iataTrcae int is Si 1e, yi. Hence, the slope of any such segment is . prea neta tee ‘The denominator, x, — x1, is not zero here since is zero because zero divided by voters unbe ore Next, consider the vertical segment ‘EF in Figure 133. ‘From the sh : e slope formula we have ‘The expression 270 undefined si vertical segment has ell-defined | re division by 0 is not permi sloy ot permitted.? Th number may not bring the image of ¢ sreimumber- Saying a tine has no aye * Vertical line to mind. Some es no slope : ind it See ALLIS. 1 more ‘Scanned with CamScannerCGHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS B déscriptive to. say a vertical line has ge pecasserensioh up-and-down is the ste a imagine. ver, in using the term infinity, which is symbolized as co, we must remember that is not a number, so saying a line “has infinite slope means its slope is undefined. In general, (x, y;) and (x), y3) represent two different points on a vertical segment because they have the same x-coordinate and the slope will be ad fine segment is undefined. which is undefined. Thus, in general, all vertical segments have undefined or - infinite slope. = frertise. Which of the following segments is horizontal and which is vertical? | a) Thé'segment joining (4, ~6) and (10, ~6). _b) The segment joining (4, ~6) and | (4, 10). Answer: 2) is horizontal and b) is vertical, ~ Exercise. Draw three segments through the point (4, 7): one sith i with the slope m = 0, and one with m = 2/3. (A slope of 2/3 aac uae a 0f3.) In applications, the slope of a line segment often is interpreted as the rate of San change in the vertical for a unit change (that is, a change of one) in the horizontal. z= . ‘ ent voriable’s rate of ‘A number of such slopes have been given names. change with respect to the “independent voriable, Example. This example uses the terms disposable income, personal consumption "7 _ expenditures, and savings. It will be sufficient for our purposes here to think of 5 mount of income left after taxes have been paid. The ed in a bank or otherwise ed is savings; ion expenditure, is spent on food, clothing, hous- ing, luxuries, and so on. ‘A Tine segment fitted to points whose coordinates are in the order (Disposable income, Consumption expenditures) for the United States in recent years passes through (312, 295) and (575, 537) ‘Scanned with CamScanner4 FIGURE 1-4 PART | LINEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION Where the numbers are in‘billions of dollars, The slope of the segment shown in Figure 1 295 _ 242 312 263 Change in consumption expenditures _ 0.92. ‘Change in disposable income ‘Thus an increase of $263 billion in disposable income resulted in an increase of $242 billion in consumption expenditures. On a proportionate basis, son _ 90.92 $263 $I so the slope of the segment, 0.92, when written with a denominator of |, represents the rate of change in consumption expenditures per one dollar of additional income. Another way of saying this is that($0.92 out of every additional $1.00 in income will go to consumer expenditures) In economics, this change is called the smorpinal peommmgitjdeiccnnanes. oar for short, as shown in Figure 1-4. Here the word marginal, means extra, and MPC is the extra consumption that “accompanies a $1 increase in income. Income not used for consumption expen- ditures is saved. We see from the preceding that $0.08 of each extra dollar of = 0.92, ‘Consumption expenditures (Sbillions) (312, 295) ‘Scanned with CamScannerCHAPTER 1 called the marginal propensity to'save, — disposable income is saved, and 0.0 ‘MPS. Clearly, MPS = 1 — Mpc. The important bearing these two mat ‘int avi and other economic acti lable to consumers. It is interesting to LUNEAR EQUATIONS AND FUNCTIONS, Bb rginals have on the economic well-being of the ce be understood by noting that savings are the source of inesti s that produce the income that becomes note that while many believe saving is a virtue, economics teaches us that when the nation has idle productive capacit; a high propensity to save (with the consequent low propensity 10 oti) ot necessarily a virtue for the national economy. What may be needed in such times is a high propensity to consume, for this could lead to the increased demand that will bring idle capacity back into use and increase national income. This is evidenced by the government lowering the interest rate it offers to stimulate the economy. Lower interest rates discourage savings and encourage borrowing and consumption. 1.3 PROBLEM SET 1-1 Vf Gay. ya) and (x points on a line, 1a) How is the vertical change computed? b) How is the horizontal change computed? c) How is the rate of change of y with respect (0. computed? 2. a) What is the nature of the steepest line that can be drawn through a point? b) Why does such a line not have a slope number? 4. Ifa set of stairs rises 8 inches for every horizontal run of 12 inches, what slope number (assumed pos- itive) describes the steepness of the stairs? 4. If-x is the ground path of an airplane and y is its altitude, and at one point in time the plane is at (500, 1,000) and soon after it is at (500, 0), what ‘was the path of the airplane during the time interval? rll line makes a 45° angle with to have a 100 percent grade. presents a 100 percent grade? . ¥3) are the coordinates of two 5. A ski slope whose the horizontal is sai ing x units of a product is $500 at 50 units output and $900 at 100 units output, and the cost-output relation is linear, a) What is the slope of the cost-output Fine? b) How much does the production of one unit add to total cost? ay Aine segment fitted to points whose coordinates are in the order (disposable income, personal consump- tion expenditures) for a nation passes through points (32, 30) and (57, 54), the numbers being in billions of dollars. What are the values, names, and inter pretations of the slope and (1 — slope) of this line’ LY Wecrepresents sales andy epresens sling expense then (30, 22) would mean $30 in sales were accom- panied by $22 of selling expense. Suppose last month's figures were (14, 10) and this month’s are (30, 22). a) How much did sales increas b) How much did selling expense increase? ©) Make a graph showing the points and labeling. ‘What slope number re He (6, Af the total manufacturing cost, ¥ dollars, of produc- Compute the stope of the segment joining ceach pair of points: 9. (0. 0) (2+ 2 I. 6, = 1), (=2, 0). 7 1. (-3. 54 -) WL (-3, -2),(-3, 4). ‘Scanned with CamScanner‘d PART | UINEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION 1.3 PROBLEM SET 1-1 (concluded) . 3, 0). 13. (2,3), (6. 3). 1h (0.3). 8 5, Ma, = 14), Wad 2.0 Pee ies 0. 3,-7.0, - 19) Ne (-1, -2), (-3, — 4) 6. 1,1. B.3). 7 » " MM. (1.6, 3.8); (3-6. 4.2). sta ing segments having label sketches showi 8 ie Hep zero slope, and. no wi a for the slope of a line segment; illustration, slope number. : 24 Write the expression for the slope of the segment 2. Why is division by Zero excluded from arithmetic from P(a, ~2)t0 0(3, ~b) in two equivalent forms. calculations? (See Appendix 1.) Mark (T) for true or (F) for false: 1, ) Aline that rises to the right and is almost vertical 3. Consider the QBasic program. shown in Program does not have a slope number. I-1 below. Th) The slope of the x-axis is zero. 4) Describe what the-program is doing line by line. i ) Run the program for each pair of points in Prob- 2B. (-) The segment Pla, b) Oca, c) is vera. lems 9 through 22. 3. (.) A line segment of negative slope rises to the Mel Pnoceariit left. REM Slope FormularPt (xt, y1) ,P2 (x2, ¥2) JI. (+) The slope of the y-axis is not a number. tg INPUT “Enter the coordinates of 3. (+) A line segment that is very, very close to the PLL, y2) ¢- then P2(x2.y2)"s x2 vertical has a slope number that has a large absolute yl, x2, y2 . value. IF x1 <> x2 THEN m= (ya = a 2 (/) No matter how large @ number we may write PRINT "Slope tae", 72) “down, there is line segment whose slope exceeds ELSE : this number PRINT "S1 fs i r. : ' extINT "Slope is infinites | 4H. (Aline segment contained entirely in the second 37) aya quadrant necessarily has a negative slope. * a) Modify Program 1-1 so that the printout will show the actual coordinates of the two points 3. (+ ) The qua in which a line segment lies has inputted fo essary tain to the sign of the slope number 0) im the program in afr each py : in Problems 9 through 22.) PMT Of Points 1.4 EQUATION OF In Section 1.2, we considered line segments and th ihe SLOPE: infinite extension of A URCEPT FORM we wrotein Secon 1.1 Y= 15x + 0.75, ‘Scanned with CamScannerCHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS a expressed the fare paid for a taxi ride, y, in terms of x, the number of miles driveri, and the constant 0.75, which was a fixed charge for a bridge toll. For example, the fares for a one-mile ride and a five-mile ride are, respectively, 1.25(1) + 0.75 = 2 1,25(5) + 0.75 = 7, y 0 0 y " u giving us the two (x, y) points (1,2) and (5, 7). If we now find the slope of the line between these points as Moy 7-2_5 mom Sed ae we find that the slope is precisely the coefficient of x in the equatio 1.25x + 0.75. = Exercise. If y = 0.8 + 2, a) Write the coordinates of the points where x = 0 and x = 5. b) Compute the slope from the points used in (a). Answer: 2) (0, 2) and (5, 6). ) Slope is 0.8, the coefficient of x in y = O.8r + 2. The last example and exercise suggest that if we write the equation of a line in the form y equals a constant times x, plus another constant, then the coefficient of xis the slope; that is, in y mx + b, () ‘mis the slope. To prove this is so, suppose we take any pair of points on the line (1), calling them (x;, v1) and (x2, y2). Then we must prove that Bt We start by noting that because the points are on the line (1), their coordinates must satisfy Equation (1). That is, at (x1, 1), y= my + b Q and at (x2, yi eee 3) We can rewrite (2) and (3) as cua @) an () ‘Scanned with CamScannerPART LINEAR RELATIONSHIPS AKD CONSTRAINED OPTIMIZATION “The left sides of (4) and (5) both equal b so they are themselves equal, and we have yy — my = Ya — RD and, by transposing terms, mx, — mx, = Yo — Ye Factoring on the left yields mx) — 1) = 92 — 8 then, dividing both sides by (x2 — 1), we have mse—h) _ yp = wan ah y2= Yn m mom Since (yy ys) and (xa, yz) were arbitrary points chosen on the line, we have shown what we set out to prove. Thus, if the equation of a line is written in the form On the fine y= mi im gives the valve ol 5 ' sles and bjves te vue 48 the slope. Moreover, if x = O, then +6 yam td, of the pinerept. y = m0) + b= b, and (0, 6) is the point where the line cuts the y-axis. This point (where x = 0) is called the y-intercept. Thus, we have Slope-Intercept Fort If the equation of a line is written in the form ye me +b, then m is the slope and b is the y-intercept. Exomple. Write 2y + 3x = 18 in slope-intercept form 3 slope and the y-intercept. Pt form and state the value of the We must isolate y with a coefficient of 1 on the : First we transpose the term 3x tothe right-hand siden and side of the equation. ay = -3r + 18, ‘Scanned with CamScanner(CHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS Then. dividing both sides by 2, we have as the desired y = mx + b form. Hence, the slope is ~3/2 and the y-intercept is 9. The line is shown in Figure 1-5. The point (4, 3) shown on the line was obtained by choosing x to be 4, arbitrarily, and computing 3 y= -5@) +9 = -32) +953. When a linear equation is not in slope-intercept form, the simplest points to find and use for plotting the line are its intercepts. To find the x-intercept, set y = 0 and solve for x; to find the y-intercept, set x = O and solve for y. For example, in the equation dy + 3x = 18 x-intercept: 2(0) + 3x = 18 x = 6. Point is (6, 0). sintercept: 2y + 30) = 18; y = 9. Point is (0, 9). ‘This line and its intercepts are shown in Figure 1-5. (0.9) intercept is9 imtercept is 6 = Plotting by Intercepts __ The sintercept occurs enn cs the line intercepts the opis: FIGURE 1-5 ‘Scanned with CamScannernd the slope of the line, whi Morginal cost is the cost of ‘moking one additional unit. “ PART UEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION fi now asa linear function of x and so from nos Ie 1 our linear equations In i expresses The slope-intercept form expt Fe spression forall on in this chapter we will write the final this form, b) What is the slope of ertie 3 24 in slope-intercept form. ) Write the the Tine tercept? d) What is the x-intercept? coordinates of the points found in (¢) and (A). Answer: Gx +B. b)§. 0) 8d) ~ 12, ¢) (0, 8) and (~ 12, 0). } ‘The next example illustrates one of the many interpretive applications that arise when a line is in slope-intercept form. ““Brample;. It costs $2,500 to set up the presses and machinery needed to print and bind a paperback book. After setup, its costs $2 per book printed and bound. Let x represent the number of books made and y the total cost of making this number of books. a) Write the equation for y in terms of x. b) State the slope of the line, and interpret this number. ¢) State the y-intercept of the line, and interpret this number. a) The total cost is made up of the $2,500 setup cost (often called the fixed cost) plus the cost to make x books (often called the variable cost). Since the cost per book is $2, the variable cost to make x books will be $2.x. Thus, the total cost function y is y = 2x + 2,500, a linear equation in slope-intercept form. b) The slope, 2, means that every additional book printed, starting wit copy, adds $2 to the total cost. Note that it would not be proper to er beskarocey 2 per copy. That is, for example, ifx = 100 books are mave, then sort ergs y = 2(100) + 2,500 = $2,700 and $2,700 for 100 books is an average cost per copy of 2,700 100 $27 not $2 per copy. It is because of this distinction — between variable cost per copy average cost per copy it economists would call the slope the marginal cost, “is'made. c) The y-intercept, $2,500, is total cost when x = eee en x = 0 books are made. That y = 20) + 2,500 = $2,509, ‘Scanned with CamScanner\ ‘CHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS a This means if the machines were madi the book, this ¢ the fixed cost. 0 le ready and then it was decided not to print would still be incurred. This is why we referred to it earlier as ther examples of fixed cost are the cost of insurance on machinery ~ Fite costs the cost of whether or not it is used, and continuing rent on a building that is used only part- making no units (the time. overhead), Exercise. An agency rents cars for one day and charges $22 plus 20 cents per mile the car is driven. a) Write the equation for the cost of one day's rental, y, in terms of x, the number of miles riven. b) Interpret the slope and the y-intercept. ©) What is the renter’s average cost per mile if a car is driven 100 miles? 200 miles? Answer) y = 0.20r + 22. b) The slope, 0.20, means that each additional mile driven adds 20 cents to total cost. The intercept, 22, is the fixed charge, which would be incurred even if the renter used the car only for a secret meeting with a friend and did not drive it out of the parking lot. c) $0.42 per mile and $0.31 per mile. Linear equations in the form Av + By =C, KR also arise naturally in many applications. For example, suppose we have $31.50 to spend on pork and chicken. If we buy p pounds of pork at $2.25 per pound and c pounds of chicken at $1.80 per pound, our expenditures would be 2.25p + 1.80c >, A dollars, and this must equal ey Thus, | 2.25p + 1.80c = 31.50. { : In slope-intercept form, solving for p, this becomes 1.80, 31.50, p= 325° * 225 or p= -O.8¢ + 14. ‘The intercept tells us that we can buy 14 pounds of pork if we buy no shieteay The slope, —0.8, means that if we increase our purchase of chicken by one pound, BS ay by 0.8 pounds. Thus, the substitution rate is ] “O08 pounds of pork per pound o chicken, = Brertise. Solve the preceding equation for ¢ in terns of p in stope-intercept form, then interpret the intercept and the slope. 2Sp + 17.5. We cautuy 17 5 pois ofc Aaswet; c= '—1.25p 417.5. Weeanbuy 175p substitution rate fs 1.25 pounds of chicken pet pound of pork. me buy nopark. The ‘Scanned with CamScanner32 1.5 STRAIGHT-LINE EQUATION GIVEN A POINT AND SLOPE ‘PART LINEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION We have seen that the straight-line equation can be written direetly if the oD and a particular point, 1 are given. The equation then is given by the slope-intercept form not the y-intercept, we can easily determine this intercept from If the given poi the above slope-intercept form. Example. Find the equation of the line with slope 0.75 that passes through the point (8, 10). We first write the partially complete equation y= OTS +b a) and now we must find the value of b. Because the line passes through (8, 10), these coordinates must satisfy (1), so, substituting, 10 = 0.75(8) + b 10 =6 +6 a= by and the y-intercept is found to be b = 4, Hence substitution into (1) gives the desired equation = Exercise. Find the equation of the line that has a slope of —0.50 rough 1p —0.50 and passes thi the point (4, 3). r Answer: y = 0.54 + 5. ‘An alternative approach isto let m represent the given slope and (.4,.») represent the given point. ‘The formula we want is the equation that is true not only tor the point (1,, y1) but also for any other point (x, y) on the line. Thus, if we look at (x.y) and (x, yy as two points on the desired fine, then the slope This must equal m for all pairs of points on the line. So, we have ‘Scanned with CamScannerCHAPTER 1 UINEAR EQUATIONS AND FUNCTIONS 3 Point-Slope Form or y— yy = ma — %). Returning to the last example, where m = 0.75 and the given point (x1, yx) is (8, 10), substitution into the point-slope form yields y — 10 = 0.75(x — 8) y — 10 = 0.75 - 6 y = 0.751 + 4 as before. For more practice, redo the last exercise using the point-slope form. ‘Two points completely determine a straight line and, of course, they determine the 1.6 STRAIGHT-LINE slope of the line. We do not need a special two-point form since we can use the EQUATION FROM two points to first compute the slope, m, and then use this value of m together with TWO POINTS cither point in the point-slope form yoy = mx — 1) to generate the equation of the line. “txample. The total cost, y, of producing x units isa linear function. Records show that on one occasion 100 units were made at a total cost of $200, and on another vccasion, 150 units were made at a total cost of $275. Write the linear equation for total cost in terms of the number ‘of units produced. What is the total cost if 250 units are made? ‘The information given consists of two points whose coordinates (x, y) are in the order (units made, total cost). These are (100, 200) and (150, 275). The slope of the line is then 275 = 200 _ 75 _ m= 150 — 100 50 1s Now picking one of the points, say (100, 200), we substitute in the point-slope form to get y — 200 = 1.5(x — 100 ‘Scanned with CamScanner1.7 HORIZONTAL AND VERTICAL LINES uIATION PART | UNEAR RELATIONSHIPS AD CONSTRAINED ori Solving this for y, we have the desired equation y — 200 = 15x — 150 y = 15x +50. The total cost of making 250 units is then = 1,5(250) + 50 = $425. Exercise. A publisher asks a printer for quotations on the cost of peintog 1 oon ee | 2,000 copies of a book. The printer quotes $4,500 for 1,000 copies abd! Biel Ve 2,000 copies. Assume that cost, y is linearly felated to x, the number of Bowe printed. a) Write the coordinates ofthe given points.) Write the equation of the fine. _c) What is the cost of printing 2,500 copies? ‘Answer; a) (1,000. 4,500); (2,000, 7,500). b) y = 3x + 1,500. c) $9,000. When the equation of a line is to be determined from two given points, it is a good idea to first compare corresponding coordinates. The reason is that if the y values are the same, the line is horizontal, but if the x values are the same, the line is vertical. For example, given the points G, 6) and (8, 6) we see that the line through them is horizontal because both y- This line is shown in Figure 1-6. It is clear that y irrespective of the value assigned to the x-coordinal -coordinat is 6 at every point on t te, and because describes this line, and this line ont is an ly, We say y = 6 is the equati line lite il nt nized the quality ofthe evondnates sf th Oy ant Oona Proceeded with the slope-intercept determination of the equation by first finding then using the point-stope form to pet Y= 6= 0% ~ 3) ¥-6=0, we would have obtained y=6 ‘Scanned with CamScanner‘QHUPTER 1 LINEAR EQUATIONS AND FUNCTIONS 3 FIGURE 1-6 FIGURE 1-7 10 20 aps 6 BO y=6 (5,12) 10 : : : 6.2 a) 0 10 2 -10 -10 20 as the equation of the line. However, there is no need to proceed beyond the first step because if the slope, m, turns out to be zero, the line is horizontal and has _Hoszona lines hve zeo an equation of the form slope ond equtions y = constant, y= constant where the constant is the given y-coordinate. If the x-coordinates of the two different points are equal, as in (5,2) and (5, 12), the line through them is vertical, as shown in Figure 1-7, and its equation is x= 5. If we had proceeded to apply the point-slope procedure, we would obtain eee “3=5° 0 which is undefined. We need not proceed further because if the slope is undefined, Vertical lines have undefined the line is vertical and has an equation of the form slope ord equations x = constant, constant where the constant is the given x-coordinate. ‘Scanned with CamScannerBS PART 1 UNEAR RELATIONSHIPS AND CONSTRAINED OPTIMZATION We have become accustomed to seeing es we have just learned, the coefficient of x or the ¢ be zero, in W case we have a horizontal or a vel In summary: The line through (x), yy)s (tas su) is y= Ste The line through (x, y1)s (Xs ¥2) is. = he Exercise. What is the equation of the fine through 9 b) (3, 6) and (2, 6)? Answer: aya = 4: by ) (4, 26, hx and y in linea! .e coefficient of tical line. 1 equations but, as (but not both) can 2) and (—4, = 3)? 1.8 PROBLEM SET 1-2 Find the equation (in slope-intercept form, if possible) of the line passing through the given point and having the given slope: I (3, 4), slope 3 4 (-5, -8), slope 13. (=5, 6) slope -1 (0, 0), stope 0. 3. (2. 6), slope 9. (5, 2), vertical, } (1, ~4), slope 172 1. (0,0), vertical (=3, -8), slope 0. SH. 6,4, slope 0 & (2.7), slope — 6. Bu 3), slope § Find the equation (in slope-intercept form, if possible) of the line passing throu, jh 4.(-3.7 wou 12), 2, -3), Wo (-5,3.02,9) M (=7.2,(-7, —» i (.b,O.%. 1 G5.04. (22, 9.150 27 3.5) (4,5) 1. 0.0.2.9. at. 0, 0). 2.40.34 Y (-3 2.4, =7), 25. Write the equation of the x-axis, % On the tine of stope = — 26, Write the equation ofthe y-axis, what isthe pee year What is the e ¢ equation o © through (—6, 3y9 fhe line passing through (2, 3)and(~5, 6), what, 7. On ate he ois whee = 1 ta ish cach of the given pairs of points: coordinate Ban through (3, 7), the point Where Vertical line that passes ‘Scanned with CamScanner(HAPTER 1 UNEAR EQUATIONS AND FUNCTIONS 1.8 PROBLEM SET 1-2 (continued) 0. A. 8) What is the equation of the horizontal line that passes through (~6, 3)? b) A curve showing profit (vertical) and number of units produced and sold (horizontal) rises smoothly o a peak and then declines as we move to the right. The peak is at (100, 500), What is the equation of the tangent line at the peak? What is the significance of this equation? Hint: Make a sketch labeling the axes, showing a curve that has /~ a rounded peak. a) What is the equation of the line parallel to, and S units above, the x-axis? b) WWhat is the equation of the line parallel to, and 10 units to the left of, the y-axis? As sales (x) change from $100 to $400, selling ex- pense (") changes from $75 to $150. Assume that the given data establish the relationship between sales and selling expense as the two change, and assume that the relationship is linear. Find the equation of the relationship. Mark (T) for true or (F) for false: %. a. B (*) The horizontal line through (5, 6) has the equa- tion x = 5. (& ) The equation of the x-axis is y = 0. (/ ) The slope of the line through (4, 6) and (5. 9) is greater than the slope of the line through (0, 0) and (1, 2). \ B. (+) The equation of the x-axis is x M. (1) The x-intercept of 3¢ — 2y = AN, (4) The slope of 2x + 3y = 6 is A the number of units manufactured increases from 100 to 200, manufacturing cost (total) in- creases from $350 to $650. Assume that the given data establish the relationship between cost (y) and number of units made (x), and assume that the rejationship is linear. Find the equation of the rela- fonship. IF the relationship between total cost and number of units made is linear, and if cost increases by $3 for each additional unit mage, and if the total cost of 10 units is $40, find the equation of the rela- tionship between total cost (y) and number of uni made (1). 95. a) Iftaxi fare (y) is 50 cents plus 20 cents per quarter mile, write the equation relating fare to number f miles traveled, m. by The weekly camings of a salesman are $50 plus 10 percent of the retail value of the goods he sels. Write the equation for earnings. E, in terms of sales volume, V. What is the slope of this line called? aie the following lines, using intercepts: Ro y= -x +6 By = 15x - 6. Wy = 0.40 + 1.2. What is the slope of each of the following lines? A 3x - 2y Byar-4 ya(-br +h ‘Scanned with CamScanner= PART UNEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION 1.8 PROBLEM SET 1-2 (odode) 51. a) A pound of Food A contains 8 ounces of a nu- trient, and a pound of Food B contains 12 ounces of the nutrient. Write the expression that must be satisfied if « pounds of A and y pounds of B are to provide 96 ounces of nutrient 'b) What is the substitution rate of A per pound of ” c) What is the substitution rate of B per pound of ar 52. What is the equation of the line that hus a slope of 2 and a y-intercept of — 6? $8. Ifa straight-line equation isin the form Ar + By +C=0 S& Consider the QBasic program shown in Program 12 a) Describe what the program is doing line by line. 'b) Run the program for each pair of points in Prob- lems 13 through 24. REM PROGRAM REM Equation of LinePt ext, y1), ZO. cus INPUT “Enter the coordinates of Prixt.yl), then P2(x2,y21"; x1, yl, x2, y2 PRINT “The equation of the line between P1 and P2 is *; IF xl = x2 THEN PRINT "x ="; x1 ELSE PRINT ty =" IF yl © v2 THEN PERPENDICULAR LINES rf coefficient of y. Why is this statement truc? slope is —A/B; that is, the ff the cocfticient of x to the and B + 0, then the negative of the ratio of If total cost is y and number of w x, what expression represents a constant cost per unit? What equation would replace the statement that cost per unit is $3? What is the slope and what are the in- . A printer quotes the price of $1,400 for printing 100 copies ofa report and $3,000 for printing 500 copies. ‘Assuming a lincar relationship, what would be the price for printing 300 copies? 4 tercepts of the line whose equation was just written? 5 PRINT yt ELSE m= ty2 - yl) / 2 b= yl- mex PRINT my; "x"; IF b > 0 THEN PRINT * +"; PRINT ; "="; ABS (by END IF END IF ~ xt) b; ELSE 5 ay Modify Program 1-2 to print the cept. and equation of a line passing throug! gy Me Pains Pts 9 and parents ) Run the program in (a) for each pa Problems 13 through 24 oncbaaet 58. a) Modify Program 1-2 to print the equation of a line pavsing through a H igh a given poi a) having given steps oe Pa Pa) a lope, y-inter= 9 PARALLEL AND — Lines ‘Scanned with CamScannerCGHAPTER | UINEAR EQUATIONS AND FUNCTIONS x” FIGURE LB are parallel lines, as shown in Figure 1-8. We shall have occasion to be concerned about two lines in coming chapters where the equation of each line expresses a condition that must be satisfied, and we wish both conditions to be satisfied. This means that we will be secking a point that is on both lines (that is, the point of intersection of the lines). Clearly, it is impossible to satisfy both conditions two lines are parallel because they do not intersect. The pair of equations with parallel lines is called inconsistent. Paco lines hove the slow their eg rns gm ms ane io pout fees on both fs Exercise. Which of the following pairs of lines are parallel? ay det diy = 15x +5; byy = -2x + y= -1Se4 5. ‘Answer: The pair in (a We call a line a slant line if it is neither horizontal nor vertical. If wo slant lines are perpendicular, the slope of one is the negative reciprocal of the slope of the other. Thus = Perpendicular Lines 2 = 5x45 and y= 3x 410 ‘Scanned with CamScannerbe PART UNEAR RELATIONSHIPS AND CORSTRAINED OPTIMIZATION ative reciprocal of the are perpendicular, as shown in Figure 1-9, because the negative reciprocal © Slope of the first ine is 3 Perpendialar tn slopes which are negative retiprocals of ecth cher hs ave as easily say that the product 1. Thus, for the last pair cond line. We could and ~3/2 is the slope of the s a that are perpendicular is ~ of the slopes of two slant lines of lines 2/3 . mum = 3 (73 Note that y=6 and x=5 the first is hoyizontal and the second is vertical. —1 relationship only . are perpendicular lines becausé However, x = 5 has an undefined slope, so'the my applies if the lines are both slant lines") Exercise, wen line { is y = 2x — 3.$ and line 2 is y of these isy = 2x + 4 a) parallel? b} perpendicular? Angwet: 3 ti 1b fine 3 FIGURE 1-9 ‘Scanned with CamScanner‘GHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS 4 Any equation in the variables x and y that has no constant term other than zero 7.10 LINES have a graph that passes through the origin. For example, in the case of the straight THROUGH THE line ORIGIN it is obvious that (0, 0), the coordinates of the origin, satisfy the equation. To graph this line, we need to find a second point other than the origin. Choosing, for example, xa so the point (3, 2) is on the line as shown in Figure 1-10. From an applied point of view, such lines are of interest because they are the mathematical expression of proportion. That is, if we write the equation in the Lines pssng through the form ‘origin have constont term 0 ‘and represent 0 proportion between x ond y. we may read the statement as “y is tox as 2 is to 3.” An assumption that, say, output per man-hour is 3 units would translate to y/x = 3, where y is number of FIGURE 1-10 ‘Scanned with CamScannera PART LINEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION ical expression of the units of output and.x is number of man-hours worked Corsi assumption would be the straight line ) 3x, passing. ee vcrivensediesis 0 When considering revenue obtained from sale of a product, hen the number of units sold, x, is O. The revenue obtained by selling x units at a constant price of $5 per unit would be r= 5x, a line through the origin. Exercise. If it costs c dollars to maintain a factory and produce x units of product, would it be reasonable to assume the cost curve goes through the origin? Answer: I would not be reasonable because at x = 0 (no output) costs of insurance. security, interest payments, and other elements of fixed cost, which do not depend upon output, would still be incurred. 1.11 PIECEWISE LINEAR FUNCTIONS Piecewise linear functions ‘ore composed of two ot mare pieces, all of which ore linear. Sometimes an equation will consist of more than one section or piece, each of which is linear. For example, fx «so 2 x50 J describes a function composed of two linear of x = 0, and the second being 2x for all values of fu t x>0.S ction is cx 4 piecewise linear function and its graph is shown in Fie ae Piecewise linear functions may be connected, as in Fi | led, as x jy ; in Figure 1-11, or may have Pieces, the first being x for all values This function has a jump atx = 2 as indica left section ofthe graph in Figure tod ss PY ME 8" a the right end of the Muny practical situations give rise to piecewise linear functi junctions, Example. Boston Gas Compa gas as follows: a $6.71 c therms, and $0.6800 per therm for cach cost function and draw its graph. by Wi ©) What is the charge for using 200 them the charge was $355.93, ns? ‘Scanned with CamScannerCHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS FIGURE 1-11 FIGURE 1-12 ‘Scanned with CamScanner“poe wa PART | LINEAR RELATIONSHIPS AND ‘CONSTRAINED ‘OPTIMIZATION ists of the $6.71 customer charge plus fhe first 160 therms consist 7 ee a 2) The charge fore perm, Letting ¢ represent the nur the $0.7376 charge per the charge becomes fH 6.71 + 0.73761. Now if the customer uses more than 160 therms, the charge from (1) for the first 160 therms will be 6.71 + 0.7376(160) = 124.726. ‘To this must be added the charge of $0.6800 for each therm over 160, resulting in a charge of 124.726 + 0.6800 (1 — 160) = 124.726 + 0.68001 - 108.8 = 15.926 + 0.68001. 2) Putting (1) and (2) together, we get the cost function cw = { 671 + 0.7376 OS 1s 160 15.926 + 0.6800r 1> 160. Figure 1-13 graphs this function. ) If the customer uses 120 therms, th is i first pi Oa » the charge is determined from the first piece 400 (160, 124.726) ‘Scanned with CamScannerCHAPTER 1 UNEAR EQUATIONS AND FUNCTIONS 6 (120) = 6.71 + 0.7376(120) = 95.222 J or $95.22. ) If the customer uses 200 therms, the charge is determined from the second piece (since 200 > 160) to be C(200) = 15.926 + 0.6800(200) = 151.926 J or $151.93. d) Now if the charge is $355.93, the customer must have used more than 160 therms. (Remember the cost of the first 160 therms was determined to be 124.726.) So from the second piece of the cost function, we have 355.93 = 15.926 + 0.68001 or 355.93 — 15.926 if 0.6800 500.0059, which means that 500 therms were used. Before leaving this example, let's take a closer look at (b). In (b), the total charge for the 120 therms used was determined to be $95.22 resulting from a ‘customer charge of $6.71 and a $0.7376 charge per therm used. On the other hand, the average charge per therm used is erica.” Boston Edison Coropany charges its customers eccording to their usage of | electricity. One rate it charges a particular class of user is as follows: a basic monthly charge of $3.35, 3.380 cents per kilowatt hour (kwh) for the first 350 kivh, and 5.634 tents per kwh for any kwh in excess of 350, a) Determine the gost function and Graw its graph. b) What ore the total and average charges for using 200 kwh? ) What ate the total and average charges for using 400 kwh? d) How many kwh were used if the total charge is $51.80? Answer: 3.35 + 0.03380k 0-= A = 350 a) CUR) * [4.539 + 0.056344 k= 350, by $10.11; $0.08055. ¢) $18.00; $0.045. 4) 1,000 kwh, ‘Scanned with CamScannerPART LLINEAR RELATIONSHIPS AND CONSTRAINED opriMZATION FROM THEORY 10 PRACTICE, Cash Flow Analysis One of the most important measures of a count measure of cash flow: Since mich, meticuious planning is necessary. The cot och oo and at any tine fo mee ae eomitly company needs 10 borrow 1 panics seltiag services oF products flow projections that are contracts will pay the company of the contact, and the graph of tH positive slope. Fiequently, 8 companies will tro cash inflow, but tie monthly or, weeXly’ P graph of this cash outilow will be 8 ‘An example of stich a cask flow diagrem company (of ubout 34 million in annaai sales) $ and hardware installations fo laxge airports for 1-14, Noté thet Tit! iow Js a piecewise 's cash describes the ¢ash ow Sari fore: 1 that are packs to the I longer paying cash into the company. FIGURE 1-14 e Traffic Integration Inc. Projected Cash Flow, Jonvary-December 1994 ‘very few businesses have 2 t be miuimal to keep down i ine period for 0, 15.2, OF sumstances, there is no change in inges slope, sec so that it is no 1f there 1s no change in the company’s cin the slope of the cashflow diagram, At each point where tie diagram cl there has been a new contract kicking in Or an ld cue conn present and constant st be sure that it has ‘Also, the amount of cash 2 terest costs. Small com anys pany mu: payroll, ced as substat foture needs is the influx oz outflow of sufficient contrscts have cash fotinie of each contract, Many such n frame ev! haw payroll must continue 10 be met. ‘The ne segment of negative slope. e pe for Traffic’ ls etlin} pt linear foret tegration fnc., a smalt software cuginecring programs i " igure fh piece of which ntcacts in 1,500 1,000 500) 0 (500) 1,000) (1,500) Now Dec, Jan. Feb. Mar, Apr. vi 7 wo De ios) i) ko (2,000) . Cash Balance: ¥05 daly 1. 4 1 Aug, Sept. Oct, (323) (779) 1a Now Dee. (6t0) C92) ‘Scanned with CamScannerHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS 7 1.12 PROBLEM SET 1-3 1, a) Find the equation of the line through (2, 7) parallel to the line y = 1.5x - 3.5. b) Find the equation of the line through (~2, —6) perpendicular to the line y = (1/3)x + 4/3. 2. What is the equation of the line on which the y-coordinate of any point is twice the x-coordinate? 3. Find the equation of the line through the origin par- allel to y = O.8¢ ~ 2. 4, Figure A shows an existing pipeline passing through two points. Plant A is in existence at the point (5, 6). A new plant, B, is to be located on the x-axis at a point such that the dotted pipeline that will be constructed to connect A and B to the existing line will be perpendicular to the existing line. a) Where should B be located? b) What is the advantage of having the new line meet the existing line at a right angle? 5. Prove that every line whose equation is of the form Ax + By = 0, where A and B are any number (not both zero), passes through the origin. FIGURE A y Milles Mark (T) for true or (F) for false. 6 (. )Thelinesx = Sand# = 10are parallel tocach MI. other. - 7. (The lines x = Sand y = 10 are perpendicular 12. to each other, 8 (If the graph of the equation Ax + By + C = 0 is to pass through the origin, C must be 0. B. 9. (J If the ratio of y tox is constant for an equation, V4. the graph of the equation must pass through the or- igin 15. 1. (yx + y = Gand 2x + 2y = 8 are parallel but not identical lines. ‘i C)xty= lines. 6 and 2x + 2y = 12 are identical ( ) If the relationship between x and y can be ex- pressed as Ax + Dy = 0, then x and y are in pro- portion. ().x = 10 has no y-inte.cept () Any line parallel to. ~ 2y = 7 must have a slope of 1/2. (fyi units of output and. is man-hours worked, and if y = 3x, then output per man-hour is constant raw the graphs of each of the following: i ye- 1 xsl fp _ fart3, el y xth x>h 7s | 3a 2) xl. Erni? f _fx-2, #53 myeLaie x2 -2. Wy ql roa ‘Scanned with CamScanner48 PART 1 LINEAR RELATIONSHIPS AND CONSTRAINE! 1.12 PROBLEM SET 1-3 (concluded) fd Colonial Gas Company charges its customers ae- cording to their usage of gas as follows: 2 $6.00 customer charge, $1,180 per unit (100 cubic feet) for the first 20 units, and $0.806 per unit for each unit over 2 a) Determine the cost function and draw its graph. b) What are the total and average charges for using, 15 units? For using $0 units? How many units were used if the total charge is $73.93? °) d Comlectric charges its customers according to their usage of electricity. One rate it charges commercial users is as follows: a monthly customer charge of $6.00, $0.05973 energy charge per kwh for the first 2.300 kwh, $0.02505 energy charge per kwh in ex- cess of 2,300 kwh, and $0,00048 conservation charge per kwh +2) Determine the cost function and draw its graph. b) What is the total and average charge for using 2,000 kwh? 4,000 kwh? How many kwh were used if the total charge is $254,267 u. °) 4 The 1990 U.S. federal tax rate for single individuals was as follows: 15 percent on an adjusted gross in- come (AGI) between $0 and $19,450; $2,917.50 plus 28 percent on the excess over $19,450 on an AGI between $19,450 and $47,050; and $10,645.50 plus 33 percent on the excess over $47,050 on an ‘AGI between $47,050 and $97,620. a) Determine the tax function and draw its graph. b) How much tax would a single individual pay on an AGI of $15,000? ) On an AGI of $35,000? 4) On an AGI of $85,000? ¢) What was the individual's AGI if taxes $10,071.50? . OPTIMIZATION ax rate for married couples The 1990 US. ge ent ona AGI between SO wat $32,450: $4,867.60 plus 28 percent on the ex. a over $32,450 on an AGI between $32,450 and $78,400; and $17,733.50 plus 33 percent on the ex ae over $78,400 on an AGI between $78,400 and $162,770. ‘) Determine the tax function and draw its graph. ) How much taxes would a married couple pay on an AGI of $15,000? ©) On an AGI of $35,000? 4) On an AGI of $85,000? ©) What was the couple's AGI if taxes are $8,381.50? Micros Unlimited Corporation (a local distributor of microcomputers) sells one of its 486-based systems ‘on a volume discount as follows: | to 5 units at a price of $2,495 per unit, units 6 to 10 at a price of $2,195 per unit, and any unit in excess of 10 at a price of $1,995 per,unit 'a) Determine the cost function and draw its graph. b) What are the total and average costs of 3 units? c) Of 8 units? d) Of 15 units ©) How many units were purchased if the total charge was $21,255? - 1) If the average charge was $2,382.50? Fashion Designers Inc. sells each of its women’s Suits to retail stores based upon volume discount as follows: a $ ipping and handling charge, $325 per suit for the first SO suits, $275 per suit for the a Suits, and $195 per suit for cach suit in excess. ) Determine the cost function and draw its graph. b) What are the total and av aie it 8) What az rage costs of 30 suits? &) OF 150 suits? ©) How many suits were was $49,625? 1) WU the average charge was $318 Purchased if the total charge ‘Scanned with CamScanner‘qUPTER 1 UNEAR EQUATIONS AND FUNCTIONS 9 section, we look at how the mathematical terminology of linear equations 1 be used in a real-world situation, Assume that C is the total factory (man- ufscturing) cost of production of a product when Q (for quantity) units of the product are made. We also assume that the relationship between C and Q is linear,’ 2s is frequently the case, and show this in Figure 1-15 as the line segment LM. When making interpretations from Figure 1-15, keep in mind that a vertical distance represents a cost while a horizontal distance represents a quantity (number of units). Thus, the segment PT represents the total cost of producing OP units of product, and UM is the total cost of producing OU units of product. The distance OL, the vertical intercept, corresponds to the cost of operation when zero units are produced, the reasoning here being that some costs (such as insurance on the plant) exist even when no product is being made. Borrowing an accounting term, we interpret OL as fixed cost, that is, the component of cost that does not vary with the number of units made. (See Section 1.4.) In Figure 1-15, fixed cost is OL = PS = UR. If we make OP units of product, the total cost is PT. PT, in turn, is the sum of PS and ST. PS is fixed cost; ST we shall call the variable cost when OP units are made. The term variable cost refers to the component of cost that changes as the number of units produced changes (Again, ‘see Section 1.4.) Thus, ST is variable cost when OP units are made; RM is the (larger) variable cost when OU units are made. At cach level of output, total cost is the sum of fixed and variable costs Consider the ratio RM/LR. RM is the variable cost when LR (or OU) units are made. The ratio Variable cost Number of units made the variable cost per unit of product made. By definition, RM/LR is the slope of LM, and the slope of a straight-line segment is constant. Consequently, variable Cost per unit is constant when cost and output are linearly related.* Economic termiriology leads us to another description of the slope of LM in Figure 1-15. Economists speak of the extra cost (the change in total cost) when one more unit is made as the marginal cost of that unit. This is the vertical change for a horizontal change of one. It is the slope of the line. We may say that when total cost is linearly related (o output, marginal cost is constant. (Marginal cost, of course, will not be constant if the total cost function is not linear. As we will see in later chapters, though, the marginal cost will always be the slope of the total cost function.) ‘When the output interval is wide, the cost-output relationship may well be curved rather than straight, We shall consider the case of a curve in later chapters, “if, on a cost curve, variable cost is divided by number of units produced, the rato is called average vynrlable cost per unit and is mot constant 1.13 INTERPRETIVE EXERCISE: COST- OUTPUT Totol cos is the sum of faed cst plus variable cost Morginal cost isthe variable cost per unit or the slope of the total cost function; it is constant if the function is linear. ‘Scanned with CamScannerIMIZATION 50 ART UNEAR RELATIONSHIPS AND CONSTRAMED OFT FIGURE 1-15 ae= C (otal eos Variable f—----— cost of OU units Total cost of Variable cost OU units of OP units L Fixed cost e P uv Number of units For further practice, observe that UM is VM greater than PT, which means that it costs VM more dollars to produce OU units than to produce OP units. TV. on the other hand, represents how many more units can be produced for UM dollars than for PT dollars. We have said that when total cost is linearly related to output, then variable cost ‘Average cost is the total per unit is constant. Average cost per unit, defined as total cost over number of cont per ont ond is aot nits produced, is not constant. Rather than argue this statement from Figure consort 1-15, suppose that we interpret the equation: y= +2, : letting y be total cost of producing x units. The fixed cost is $2 and the variable cost per unit (the slope) is $3. However, by substitution, we find that total cost rises from $17 to $32 if x changes from 5 to 10 units. The average cost per unit Summary Total cost + Variable cost + Fixed cost. Also, Marginal cost = Variable cost per unit . and is precisely the slope of the total cost function, while Average cost = Total cost per unit. ‘Scanned with CamScannerCGHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS 5 declines from 17/5 to 32/10, that is, from $3.40 to $3.20. This reduction sometimes isrefered to as being a consequence of spreading fixed cost over a larger number of units. 1.14 PROBLEM SET 1-4 Mark (T) for true or (F) for false, (Assume that cost means factory cost.) Given that total cost, y, of making x units isy = Sx + 10: 1. (_) The total cost of making 20 units is $110. 6 (_) The variable cost incurred when making 10 items 2.) Average cost per unit is $6 if 10 units are eso made. 7. ( ) Average cost per unit decreases as the number of units made increases. 3. (_) The marginal cost of the 11th unit is greater than $5. 8 (_ ) Variable cost increases as the number of units ‘made increases. 4. (_ ) The marginal cost of the 20th unit is $5. 9. (The marginal cost of every unit is the same. 5. (_ ) The variable cost per unit decreases as the num- 10. (_) The slope of the line is the variable cost per ber of units made increases. unit, 4 If the total factory cost, y, of making x units of a Si If total factory cost, y, of making x units of a product product is given by y = 3x + 20, and if 50 units is given by y = 2x + 25: are made: a) Graph the cost-units equation, a) What is the variable cost? b) Draw a line representing fixed cost on the graph 'b) What is the total cost? for (a). c) What is the variable cost per unit? ©) Erect a vertical line at x = 10; intersecting the d) What is the average cost per unit? araxis at R, the fixed cost line at S, and the given ) What is the marginal cost of the SOth unit? equation at T. f. iftotal factory cost, y, of making x units of a product 4d) What are the numerical values and the interpre- is y = 10x + 500 and if 1,000 units are made: tations of RS, ST, and RT? a) What is the variable cost? 16 'b) What is the total cost? ¢) What is the variable cost per unit? In Figure A, the slant line represents the relation between total factory cost, C, of producing a number of units, and the number of units, Q, pro- SA 4) What is the marginal cost of the last unit made? tiuced, What Tine segmeni(s), or ratios ater 1B. A printer quotes a price of $7,500 for printing 1,000 represent: copies of a book and $15,000 for printing 2,500 a) Fixed cost? copies. Assuming a linear relationship and that 2,000 b) Total cost if OA units are made? books are printe ) Variable cost if OA units are made? 1) Find the equation relating the total cost, y, t0 x, 4) Variable cost per unit made? the number of books printed, ©) Average cost. per unit if OA units are b) What is the variable cost? made? ‘c) What is the fixed cost? 1) Fixed cost per unit if OA units are made? d) What is the variable cost per book? 8) How many more units can be made for AD dol- ‘¢) What is the average cost per book? lars than for AF dollars? f) What is the marginal cost of the last book printed? h) Marginal cost? ‘Scanned with CamScannerTON Ce PART LUNAR RELATIONSHIPS AND CONSTRAINED orrimza 1.14 PROBLEM SET 1-4 (concluded) FIGURE A FIGURE 8 ° 16 Prior to making a number of units of a certain part, Figure B as the segment RS. What interpretation ‘a machine must be made ready, the cost incurred would be given to: being called the setup cost. The total machine shop a) OR? ©) PNIOM? cost, C, of making Q units of the part is shown in b) PN? 4) MNIOM? 15 BREAK-EVEN One way for a manager to make sure he or she is making a profit is to first analyze INTERPRETATION: 1 the circumstances necessary to break-even (.e-, neithet make a profit nor caver a loss). Then the manager can develop a plan to do better than break-even (i make a profit). Now to break-even simply means that re i ; ee ‘venues must equal costs, Profit = Reve nue ~ Cost, then at break-even Breok-even occurs when Revenue = Cost Revenue Cost so that means that Profit 0 Profit = 0. Prot 0 In this section and the next, we will present owo by i R . reak-even interpretati first will be from the point of view of a production es inietpretations, The that of a financial manager. The underlying principle, however woe S€coud trom ituations (.€., break-even occurs when Profit = 0) ‘er, is the same in both (On the production side, the cost of operation, as we by + aS We have seen, is made up of ‘Scanned with CamScannerCOUPTER 1 UNEAR EQUATIONS AND FUNCTIONS 3 the fixed cost plus the variable cost for the number of units produced. The revenue depends on the selling price and the number of units sold. For simplicity, we assume that the number of units made and sold is the same. Example. A manufacturer of compact dises (CDs) has a fixed cost of $10,000 and variable cost of $7 per CD made. Selling price is $12 per CD. a) Find the revenue, cost, and profit functions. _b) What is the profit if 2,800 CDs are made anil sold” ¢) What is the profit if 1,000 CDs are made and sold? d) At what number of CDs made and sold will the manufacturer break even? e) At what sales volume (rev- enue) will break-even occur? a) We denote the number (quantity) of CDs made and sold by q. Then since CDs are sold at $12 apiece, the revenue function is R(q) = 124. Now since the variable cost per CD is $7, the variable cost of making q CDs will be 7g. Adding the fixed cost of $10,000, the cost function becomes C(q) = 7q + 10,000. Lastly, since profit is revenue minus cost, the profit function is P(q) = R(q) ~— Clq) 2g — (1q + 10,000) = Sq — 10,000. Notice that the coefficient 5 of q represents the profit per CD and is precisely the difference between the selling price per CD of $12 and the variable cost per CD of $7. Similarly, the constant term of — 10,000 indicates that the manufacturer has to produce and sell enough CDs to compensate for the fixed cost of $10,000 before breaking even. , ) If 2,800 CDs are made and sold, then the profit is P(2,800) = 5(2,800) — 10,000 = $4,000. ) On the other hand, if 1,000 CDs are made and sold, the profit is P(1,000) = 5(1,000) ~ 10,000 = ~$5,000. indicating a loss of $5,000. d) At break-even, profit will be 0. Thus Pq) =0 5q — 10,000 = 0 q= noe = 2,000 CDs. ©) Finally, the break-even dollar volume of sales (revenue) is R(2,000) = (12)(2,000) = $24,000, ‘Scanned with CamScannerba) PART LATIONSHIPS AND CONSTRAINED OPTIMIZATION 1s has a fixed cost of assette, a) Find the rever ttes are made and s 4) At what number of | ¢) What is the break. | rercise. A manufacturer of cassette tape: cost oF $6 per cassette proiced. Selling price Is $9 perc Cost, and profit functions, _ b) What isthe profit if 25 001 casse ©) What is the profit if 18,000 cassettes are made and sold? cores mide and sold will the manufacturer break even? coven dollar volume of sales (revente)? 3 Jarwon, © a) Rig): nt Silay vb 60,000; POS = 39, /60.000...P) $15,000. | 6) Lees of $6,000, d) 20,000 cassettes. _¢) $180,000 = Breok-Even Charls Returning to the revenue and cost functions of the Jast example, R(q) = 12q and C(q) = 74 + 10,000, and plotting these in the usual manner, we obtain the graphs in Figure 1-16. Observe that the revenue line goes through the origin and that the cost line has a y-intercept ‘of $10,000, The dotted horizontal line shows that this fixed cost is constant at all FIGURE 1-16 Revenue and cost (S000) 40 Revenue 30 Rq)= 1 1 1 1 t ' (2,000, $24,00 y Cost 1 ia 1G Variable \ | \ 1 1 1 C(q)= 14+ 10.000 | P Gent 10 ‘Scanned with CamScanner(CHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS oe Scien ‘The variable cost, which is the 7q in the cost function (not the varial le cost per unit, which is constant) is the vertical distance from the fixed cost line to the total cost line: it of course increases as more units are produced. To the left of the break-even point (2,000, $24,000), the cost line is above the revenue line; the vertical separation at any point represents the associated loss. On the other hand, to the right of the break-even point, the vertical separation represents the associated profit. Break-even charts are a helpful graphic aid. They are frequently used in planning business operations. Exercise. Superimpose the profit function Pig) = 3q ~ 10,000 on the revere and | cost functions in Figure !~16 and plot the break-even profit point (2,000, $0). Compare | the profit to the left of (2.000, $0) with the preceding analysis of the cost and revenue | functions to left of the break-even point (2,000, $24,000). Do the same to the } right of (2,000, $0) | The example of this section occurs often enough that it is useful to parameterize it (that is, to replace the numerical values by arbitrary constants called param- eters). For this purpose, assume the manufacturer sells the q units of the product at a price of Sp per unit (instead of $12). The revenue function will then be Revenue = (Price per unit)(Number of units sold) or simply Rq) = Pa. a Next, if we assume the variable cost per unit is $v (instead of $7), the variable cost will be . . (Variable cost per unit)(Number of units made) = vq. Then if we assume the fixed cost is $F (instead of $10,000) and add this to the variable cost, we have the cost function: Cost = Variable cost + Fixed cost Ci) = 4 + 2 Finally, since Profit = Revenue — Cost, we have the profit function Pq) R(q) — Cq) = pq — (vq + FY = Parameterizing a Model A parameter is an arbitrary Const ‘Scanned with CamScanner 556 1.16 BREAK-EVEN INTERPRETATION: 2 IW PART NEAR RELATIONSHIPS AND CONSTRAINED ‘OPTIMIZATION or simply a P(g) = (p ~ va ~ F ‘of the example of this section and verify. | Equations (1), (2), and (3). = Erercse, Substitute the numerical values x the revenue, cost, and profit funetions in the preceding Jen occurs when profit is zero, we have from Equation (3) Now since breal P(g) = 0 (p-vq-F=0 (p - vg =F. Solving this for q gives us a formula for the break-even quantity qe Break-Even. Quantity (4) Using Equation (4) for our example where, as we saw, p = $12. v = $7. g F = $10,000, we have P 2, v = $7, and 10,000 _ 10,000 : 2-7 7 3 ~ = 2.000 records, Ge = which is precisely the same result as before. = Exercise. Use Equation (4) to verify the exercise of this section. HY te beakoven quantity ofthe cane tapes enerenaiaemt pa Production managers and other operations executive: analysis in the way it was presented in the previous s financial managers are more likely to think in ace latter way of viewing break-even, we shall con, tend to think of by of break. ection. Comptrotte ‘ounting terms, sider a company ven ind other To illustrate this Y that purchases ‘Scanned with CamScanner(CHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS products and sells them at a pri ; at price that is presumably above the e, f EKAMple. that an fey eg ere at Presumably above the cst. Suppese, for therefore $70. That is, 12) is priced to sell at $200. The markup is Cost = $130 Retail price = $200 Markup = Retail price ~ Cost = $200 ~ $130 = $70 From the manager's viewpoint, the dollar amounts of markup on numerous indi- vidual items, which will vary widely, are not very useful in planning and controlling operations. What is useful is the overall markup percentage on all items. For comparability in different ite markup is viewed in one of two ways: a function of the cost of a function of the retail price. In the current example, the markup as ‘a function of cost is Markup 70. = 9 4 or sam Cot 130 On the other hand, in financial statement which is the markup percentage on ret accountants use the concept of margin, price. In our example, this is Markup _ 70. Mi —_Markup_ largin = Retail price 200 = 0.35 or 35%. This means that 35 percent of the retail price of $200 is margin, and the other 65 percent of $200, which is 0.65(200) = $130, is the cost. We now suppose that the company in our illustr p con all items it purchases, so that if the firm sells $s-worth of merchandis percent of this amount is margin and 65 percent Is cost Thus, n uses a margin of 35 percent By Cost of goods sold = 0.65s. 1) Next the company incurs selling expenses, which it budgets at 10 percent of the volume of sales. Hence, Selling expense = 0.10s. Q Finally. the vompany budgets fixed expense st $12,000, so that F = $12,000. B) xed expen ations (1). (2). and (3). we see thatthe total cost funtion is C(s) = 0.65 + 0.108 + 12,000. From or simply Cs) = 0.758 + 12,000. 7 Markup is the diference between the selling price and the cos x Margin isthe markup a5 @ percentage of the selling tive ‘Scanned with CamScannerPART UNEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION ly be the same it enue will ¢ Now if the firm sells $s worth of merchandise, its revenu Ss so that the revenue function is Ris) = 8 > Since profit is still revenue minus cost, the profit function is P(s) = Rls) ~ CO) 5 — (0.75s + 12,000) = 0.255 — 12,000. Notice that the coefficient 0.25 of s represents the profit per dollar of sale precisely the difference between each $1.00 of sales and the associated $0.75 cost per dollar of sales. Alternatively, the 0.25 can be viewed as the difference between the $0.35 margin per dollar of sales and the $0.10 selling expense per dollar of k sales. As before, the constant term of — 12,000 indicates that the company has to ft sell $12,000 worth of merchandise to compensate for the fixed expense of $12,000, Now suppose the company has a sales volume of $60,000. Then its profit (before taxes) will be , P(60,000) = 0.25(60,000) — 12,000 = $3,000. On the other hand, if the company generates sales of $40,000, then its profit will be (40,000) = 0.25(40,000) ~ 12,000 = ~—$2,000 indicating a loss of $2,000. Break-even, as before, wil occur when profit is 0. Here Pls) = 0 0.25y = 12,000 = 0 $6 the company must target sales of at | i goin at least $48,000 just to be assured of breaking A toy company operates on a margin of 33 : ‘tne other variable cost at $0.13 per dollar of wales fat eopensd ie st " of wales © is estimated a) Find the revenue, cost, end profit bs b) Estimate pa profit if sales, estimates | at $4,000. ) Estimate profit if sales are $15,000. 3) What are $5 x ) What is the bec 50,000 faswet: RG) = 5:CU),> 080 + 4,000; PG) = 02 ang ee ‘of $1,000. 4) $20,000. 25 ~ 4.000. &) $6,000. 6) Loss ‘Scanned with CamScannerCHAPTER | LINEAR EQUATIONS AND FUNCTIONS na break-even chart for this example is shown in Figure 1-17. The point of Coad sarieh (548.000, $48,000) of the revenue function R(s) and the cost function C(s) establishes the by ; reak-even level of sales. The separation of lines to the right of break-even indicates profit; to the left, it shows loss. Exercise, Superimpose the profit function Pa) = 0.258 — 12,000 on the revenue and cost functions in Figure 1-17 and plot the break-even profit point ($48,000, $0). Compare the profit to the left of ($48,000, $48,000) with the preceding analysis of the cost and revenue functions to the left of the break-even point ($48,000, $48,000), Do the same to the right of ($48,000, $48,000). As in the previous section, the example of thi section can be parameterized. Here, since revenue and sales dollars are synonymous, the revenue fun simply Ris) = 5. Next, if we assume the variable cost per dollar of sales is $m, the vari will be aM FIGURE 1-17 Revenue and cost (S000) a) Revenue Ruyes \ (548,000, $48,000 break-even ow Cost 49) = 0.755 + 12,000 40 coy 20 20 40 60 80 Sales ($000) ‘Scanned with CamScannerpe PART 1 UNEAR RELATIONSHIPS AND CONSTRAINED OPTIMIZATION id this to the variable cost, ‘Then if we assume the fixed expense to be SF and ad we have the cost function: @ ls) = ms + Fe Finally, we have the profit function: P(s) = Ris) — CCS) =s- (ms + F) or simpl ches QB) Pos) = (= ms ~ yn and verify | Exercise. Substitute the numerical values of the example of this sectior the reveoue, cost, and profit functions in the preceding Equations (1), (2). and (3) Now since break-even occurs when profit is zero, we have from Equation (3) P(s) = 0 (= ms —~F =0 (= m)s = F. Solving this for s gives us 4 formula for the break-even sales .“otoakeEven Soles A Pam ) Using Equation (4) for our example where, as we saw. m = and F = $12,000, we have rim = 0465 + 0.10 = 0.75, 000 12,000 0.75 > 0.25) = $48,000, which is precisely the same result as before Exerse. Use Equation (4) 0 verify the break-even vas solange exercise of this section. Yolume of the toy company ‘Scanned with CamScannerCHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS Before leaving break-even analysis, we should note that the discussions in this and the previous section assumed that the total cost can be separated into two components: one. fixed and the other varying directly in proportion to production or sales. These assumptions often are reasonably valid for a restricted range. It is not realistic, however, to assume fixed cosVexpense will be constant over all ranges of production/sales. If production/sales are proving to be considerably below ex- pected levels, management may reduce salaries or take other actions to reduce fixed cosvexpense. It is not our purpose here to explore managerial action, but rather to introduce the tools, techniques, and models that a manager might use to make decisions needed to take the appropriate management action. In this section we introduce demand functions for products. Demand functions are an essential concept in the study of economics. Usually these functions are curves rather than straight lines, but lines provide good illustrations of demand character- istics. The demand for a product is the amount, q, of the product consumers are willing and able to buy at a given price per unit, p. Price per unit and quantity demanded are related; it is conventional in economics to plot price on the vertical and quantity demanded on the horizontal. For example, suppose the demand function for a product at one point in time is DD: p = -0.2q + 20 @ where q is in millions of pounds per time period and p is in dollars per pound. The line is shown in Figure 1-18, together with the intercepts that were used to plot it, and is labeled in the conventional economic manner as DD. | From Equation (1), we compute that at quantity demanded q = 25 million pounds per time period, p = —0.2(25) + 20 = $15 per pound. Similarly, at @q = 50, p = $10 per pound. Observe that tp = S15 per pound, demand = 25 million pounds. ‘Atp = $10 per pound, demand = 50 million pounds. i i are associated with a lower quantity demanded, as we would ce metre aspect ‘of demand functions is present in Equation wm because the Hee DD has a negative slope and, therefore, slants downward tothe right, as shown " pi enaan this section is to discuss the idea of a parallel shift in the demand function DD. The basic idea involved i that a time goes on varios factors eh pe changes in the prices of competing products, changes in population ot family + cme. or changes in individual tastes) cause the demand function to shift position: Suppose, for example, that an increase in the price of competing product cause Sarr function 19 shift. And suppose the new demand function, denoted by D'D'. is D'D' -0.2q + 22, 1.17 LINEAR DEMAND FUNCTIONS Demand functions express price as 0 function of ‘quantity demanded, ——— Demand fundions tend to shit s ime goes 00 ‘Scanned with CamScanner éla FIGUR! 2 higher per Steve veto quantity demanded Quantity demanded is 10 million pounds greater at every level of price % 4 4 Quantity demanded (millions of pounds pe 100 110 1 period) ~ DD imterce Ward shift by “aying that price per unit is $2 higher at every demanded, We Per unit is jighe: y | We can et : open ctery Zontal separation of the ny Well describe the shift in terms 0 orizontal axis: lines, which is the difference of the in- D'D' intercepy — DD intercept = This shift 0 the right ga C= 110 ~ 109 = is 10 milion pounds greased Pt = 22 — 20 = $2. level of quantity the constant hori tercepts on the hy 10 milion pounds. ft, quantity demanded ‘Scanned with CamScannerCHAPTER 1 LINEAR EQUATIONS AND FUNCTIONS ~ Exercise. Suppose that the demand functions just considered were interchanged, so that DD: p= -0.2q + 22, D'D': p = -0.29 + 20, where D’D’ arose because of a decrease in the price of a competing product. In the manner of the previous boldface statements, describe: a) The vertical shift. 6) The horizontal shift. Answer: a) Price per unit is $2 lower at every level of quantity demanded. >) Quantity demanded is 10 million pounds less at every price level. The amount suppliers are willing to provide also is a function of price per unit, so there is a supply function that interacts with the demand function, We will return to this matter in the next chapter in our discussion of systems of linear equations. The quantity of water demanded by consumers in a residential area probably remains neatly constant when the price of water varies over a limited range. This gives rise to the notion of a vertical demand function, such as “DD: q = 10 billion cubic feet shown in Figure I-I9A, and we describe this by saying quantity demanded is constant at 10 billion cubic feet at different price levels. On the other hand, consider the small potato farmer who, because of the large competitive market, has no control over the demand price which is fixed at p = $5 per bushel no matter how many potatoes he has to sell. This gives rise to the horizontal demand line in Figure 1-19B. ‘These cases are discussed in economics texts under the headings perfectly inelastic demand (Figure 1-19A) and perfectly elastic demand (Figure 1-198). FIGURE 1-198 FIGURE 1-198 in q= Wb ceubie feet 0 Seg = Horizontal and Vertical Demand Functions Perey inelastic demond is 4 vertical line indicating @ monopoly with totl price Control (ie, pure price ‘moker). Perfectly elastic demand is horizontal ine indicating o large ‘ompetitve market ie, pute pice taker) ‘Scanned with CamScannera PART 1 UNEAR RELATIONSHIPS AND COM’ 0. x46, <3 a, = aaeet r= 3, Boston Edison Company charges its customers ac- cording to their usage of electricity. One rate it charges ‘a particular class of user is as follows: a basic monthly charge of $3.35, 4.129 cents per kwh for the first 350 kwh, and 6.882 cents per kwh for any kwh in excess of 350. a) Determine the cost function and graph it. bb) What are the total and average charges for using 300 kwh? ©) For using 500 kwh? 4) How many kwh $131.35? Micros Unlimited Corporation (a local distributor of microcomputers) sells one of its 586-based systems ‘on a volume discount as follows: 1 (0 S units at a ¢ used if the total charge was ‘Scanned with CamScanner