Units Produced Total Cost 1000 $ 28,390 2000 $ 29,710 3000 $ 31

Units Produced                     Total Cost

1000                                        $ 28,390

2000                                        $ 29,710

3000                                        $ 31,160

4000                                        $ 32,450

Selling Price $3.50

You expect to sell 2,000 per month

A.  Graph the data. Is the data approximately linear?

B.   What is your visual estimate of the fixed cost?

C.   Use Regression to fit a linear model to this data. What is the slope and y-intercept on the linear model?

D.  What is the fixed cost and variable cost for this production?

E.   Find the equation for C(x)

F.   Graph C (x) on the data graph from part (a)

What are the two- “model points” that you used to graph this line?

G.  Find the equations for R(x) and P(x)

H.  What is the break-even point?

I.     You have just sold your 4,000th unit. How much longer (in time) until you break even?

J.    Graph P(x), R(x), and C(x) on the same set of axis. Graph and label the intersection point.

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