1.) Initially, you have lost 20,000 dollars in the stock market and you continue

Question

1.) Initially, you have lost 20,000 dollars in the stock market and you continue to lose 350 dollars per month. In how many months will it be before your losses total 33,040 dollars, thus your balance is - 33,040? Number of months is ___________. Show the computation.

2.) It costs a beekeeper $2.42 to make each pint jar of honey, and she sells the jars to stores at a price of $3.51 each. Her other monthly costs are the lease of the land and building $980, general supplies and equipment $185, utilities $270, transportation $300 and fixed salaries $6300.

a.) What is the monthly break even point for the number of pints made and sold to the nearest integer? ________

b.) The beekeeper decides to give herself a raise amounting to $50 per month. What is the monthly break even point to the nearest integer after the change? _________

3.) Suppose that in the year 2010, the cost of a compact car averaged $14,500 and that in 2013, the cost averaged $16,900. Assuming that the relationship between year x and cost y is linear, develop a formula for predicting the average cost of a compact car in the future. Let the variable x be the years since 2010. Be sure to use the lower case variables x and y: Formula a.) _______________________.

What do you predict the average cost of a compact car will be in the year 2019? Formula b.) _______________________.

Explanation / Answer

1)

Initially already 20000 dollars have been lost in stock market and thereafter continuous loss of 350 dollars per month is there.

Therefore months before total loss of 33040 dollars,

Balance loss = 33040-20000 = 13040 dollars

No of months before losses total 33040 dollars = 13040/350 = 37.25714 months i.e 37 months & 8 days or we can say within 38 months our losses will be more than 33040 dollars

2)a)

Her total other monthly costs = 980+185+270+300+6300 = $8035

Contribution per pint jar of honey = $3.51-$2.42 = $1.09 each

Monthly Break even point for the number of pints made and sold = $8035/1.09 = 7372 pint jar of honey

Monthly Break even point in Rupees = 7372*3.51 each = 25875.72 dollars

2)b)

After beekeeper decides to give herself raise of Rs.50 per month fixed salaries increases to dollars 6350 per month and total other monthly cost increases to dollars 8085 per month

Therefore, Monthly Break even point for the number of pints made and sold after the increase = $8085/1.09 = 7418 pint jar of honey

3)

Let the increase in year from 2010 be represented by x {suppose for 2013 x would be 3 i.e (2013-2010)} and increase in the average cost of the compact car be represented by y

Now we calculate y i,e increase in the average cost of the compact car

In 2010, Average cost = $14500

In 2013 Average cost = %16900

Therefore, in 3 years cost increased by 16900-14500 = $2400 for 3 years

Therefore, increase in the average cost of the compact car per year i.e. y = 2400/3 = 800 per year

So, Formula for predicting average cost of a compact car in future = 14500+xy

Therefore average cost of a compact car in the year 2019 will be,

14500+xy = 14500+(2019-2010)(800) = $21700

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