Question

In: Math

The monthly sales of Stewart Electronics' new sound system are given by q(t) = 2000t -...

The monthly sales of Stewart Electronics' new sound system are given by q(t) = 2000t - 100t2 units per month, t months after its introduction. The price Stewart charges is p(t) = 1000 - t2 dollars per sound system, t months after introduction.

a. Find the rate of change of monthly sales after 6 months.

b. Find the rate of change of monthly price after 6 months.

c. Find the equation of the rate of change of the monthly revenue.

d. Find the rate of change of the monthly revenue after 6 months.

Solutions

Expert Solution

Answer :

The monthly sales of Stewart Electronics' new sound system are given by q(t) = 2000t - 100t2 units per month, t months after its introduction.

The price Stewart charges is p(t) = 1000 - t2 dollars per sound system, t months after introduction.

(a) Then q'(t) = 2000 - 200t

when t = 6 we have q'(6) = 2000 - 200(6) = 800

The rate of change of monthly sales after 6 months is 800 dollars /month.

(b) And now p'(t) = - 2t

when t = 6 we have p'(6) = - 2(6) = - 12

The rate of change of monthly price after 6 months is - 12 dollars/month.

(c) The revenue is given by R(t) = tp(t) - q(t)

R(t) = 1000t - t3 - ( 2000t - 100t2 ) = - t3 - 1000t + 100t2

The equation of the rate of change of the monthly revenue is R'(t) = - 3t2 - 1000 + 200t

(d) when t = 6 we have R'(6) = -3(62) - 1000 + 200(6) = 92

The rate of change of the monthly revenue after 6 months is 92 dollars per month


Related Solutions

Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and...
Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition. Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy. To further company strategy, measures on the balanced scorecard would most likely include: number of process improvements manufacturing quality yield an increase in operating income from productivity gains
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q =...
The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 105ep − 3p2/2, where q is the demand in monthly sales and p is the retail price in yen. (a) Determine the price elasticity of demand E when the retail price is set at 4 yen. E =   Interpret your answer. The demand is going  ? up down  by   % per 1% increase in price at that price level. Thus, a large price  ? increase decrease  is advised. (b)...
You are ordering a new home theater system that consists of a TV, surround sound system,...
You are ordering a new home theater system that consists of a TV, surround sound system, and a DVD player. You can choose from 6 different TV's, 23 different surround sound systems, and 22 types of DVD players. How many different home theater systems can you build?
Find the charge q(t) on the capacitor and the current i(t) in the given LRC-series circuit....
Find the charge q(t) on the capacitor and the current i(t) in the given LRC-series circuit. L = 1 h, R = 100 Ω, C = 0.0004 f, E(t) = 30 V, q(0) = 0 C, i(0) = 5 A q(t)= I(t) Find the maximum charge on the capacitor. (Round your answer to four decimal places.)
An oligopoly market's monthly demand is given by the equation: Q = 3,840 – 0.8 P....
An oligopoly market's monthly demand is given by the equation: Q = 3,840 – 0.8 P. In creating a cartel, the four oligopolists agree to the following market shares: Firm a: 35%, Firm b: 20%, Firm c: 30%, and Firm d: 15%. They also agree to charge the same price. Their respective Total Costs functions are: Firm a T.C. = 600,000 + 0.75 Q2 Firm b T.C. = 300,000 + 0.75 Q2 Firm c T.C. = 500,000+ 0.75 Q2 Firm...
A company manufactures two products, P and Q. Monthly data relating to production and sales are...
A company manufactures two products, P and Q. Monthly data relating to production and sales are as follows. Product P Product Q Direct materisl cost per unit $40 $50 Direct labor hours per unit 2 hours 4 hours Direct labor cost per unit $50 $100 Sales demand 200 units 900 units Production overheads are $200,000 each month and are absorbed on a direct labor hour basis. There are five main areas of activity that can be said to consume overhead...
Westside produces pillows with monthly unit sales and costs given as:  Unit Sales: 4000 units...
Westside produces pillows with monthly unit sales and costs given as:  Unit Sales: 4000 units  Price: $10.00 per unit  Variable costs: $5.50 per unit  Fixed costs: $15,000 1. Westside is considering a 5% price cut without additional fixed cost. By what % would sales need to increase to keep profit constant for the 5% price cut? 2. Replacing goose feathers with synthetic filler will decrease the unit variable cost by $0.22. By what % would sales...
New Age Electronics manufactures surround sound systems and allocates overhead costs using direct-labor hours. They pay...
New Age Electronics manufactures surround sound systems and allocates overhead costs using direct-labor hours. They pay their assembly line workers $15 per hour. Unadjusted Cost of Goods Sold for the year was $598,500. Estimated accounting information for the year is as follows: Overhead costs $140,000 Direct materials $355,000 Direct labor costs (7,000 hours @ $15/hour) $105,000 Direct labor hours 7,000 Machine hours 8,000 Actual accounting information incurred for the year was as follows: Direct materials $350,000 Direct labor (7,100 hours...
      4. Calculate the new monthly payment given a $150,000 loan for 6%, 30 years (monthly)...
      4. Calculate the new monthly payment given a $150,000 loan for 6%, 30 years (monthly) with a lump-sum pay down of $20,000 made after 12 years have lapsed. New MP: Calculate the upfront fees that needs to be charged by the lender given a loan for $150,000 with terms 6%, 30 years (monthly compounding). The lender wants to earn a 6.6% yield. Assume a holding period of 12 years. Calculate the total payments and total interest expense for a...
The demand curve for T-shirts in the US is given by Q = 100 – 2*P....
The demand curve for T-shirts in the US is given by Q = 100 – 2*P. Suppose that there are no T-shirts produced in the US, but they can be imported either from Mexico or from the rest of the world. The price of T-shirts in Mexico is $20, and the price from the lowest-cost supplier in the rest of the world is $15. The US charges a tariff of $10 per unit imported. a) Consider the case where there...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT