Math problem help! Please........

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rachael724

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I have this problem, it is actually kinda long, but I have no idea how to start it. I am not asking anyone to give me any answer or do this for me, I would just like to know how to be able to do it in case I get one like it on a test.

The examples it shows in my book has some sort of cost associated with it where this one doesn't. I am not sure if anyone can help me, but if so this is the problem:

Sammy Sleaze has decided to illegally copy CD’s to sell in his CD store. There are several possible CD copiers that sales reps have shown him. Machine A has a fixed cost of $1000 with a variable cost of $1 per unit. Machine B has a fixed cost of $3000 with a variable cost of $0.80 per unit. Machine C has a fixed cost of $10,000 with a variable cost of $0.50 per unit.

a. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and B. You must show your work for full credit.

b. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines A and C. You must show your work for full credit.

c. Mathematically calculate the point (in CD’s copied) at which the total costs are equal between machines B and C. You must show your work for full credit.

d. For each machine A, B and C, draw the total cost lines on the graph included. Label all important points. Please turn the page 90 degrees clockwise for best fit of the data on the graph. Neatness and proper scaling count.

e. Write a decision rule for selection of machines based on anticipated number of CD’s copied


Thanks to anyone who can help me.
 
rachael724 said:
The example...in my book has some sort of cost associated with it where this one doesn't....
Click to expand...
I must be misunderstanding the problem, then, because it looks like this problem does involve costs...?

a) If "y" is the total cost, then you have the fixed costs (what you pay whether you actually use the machine or not) plus the variable costs (what you pay, per unit, for however many units).

If "x" is the number of units, then y = 1000 + [?]x for Machine A. (Finish the equation.) Do the same thing to find the equation for Machine B.

To find where the costs (the y-values) are equal, set them equal, and solve for x.

b) Same process as (a).

c) Same process as (a).

d) I don't know what they mean by "important" points, unless maybe they mean the intersection points of the various pairs of lines. I don't know why they want you drawing sideways, either...?

e) Is there one machine that's always cheapest, or does it depend on how many CD's you're making? What are the ranges over which you should use the various machines?

Eliz.
 
Well the problems in the book have something like Vairable cost $22 and Fixed Cost $20. It gives more numbers than this problem which confuses me. That is what I meant to say.
 
stapel said:
rachael724 said:
The example...in my book has some sort of cost associated with it where this one doesn't....
Click to expand...
I must be misunderstanding the problem, then, because it looks like this problem does involve costs...?

a) If "y" is the total cost, then you have the fixed costs (what you pay whether you actually use the machine or not) plus the variable costs (what you pay, per unit, for however many units).

If "x" is the number of units, then y = 1000 + [?]x for Machine A. (Finish the equation.) Do the same thing to find the equation for Machine B.

y= 1000 + [$1] x I am confused because how do i know how many units
Click to expand...

If I am doing this right..........
 
rachael724 said:
y= 1000 + [$1] x I am confused because how do i know how many units
Click to expand...
Simpler: "y = 1000 + 1x".

You don't know the number of units; that's what you're being asked to find.

Eliz.
 
y = 1000 + 1x
y = 1001x
1001 = x

?
I am sorry Stapel, I know this is probably simple I am just not getting it......
 
I'm sorry, but I can't make heads or tails of what you're doing...?

Try following the step-by-step instructions provided earlier:

Find the first two cost equations, set them equal, and solve for the production level "x" that gives equal costs for each pair of machines. (That is, find the intersection points of the pairs of lines.)

Graph the three lines, marking the intersection points that you've found in parts (a), (b), and (c).

Then, between each pair of intersection points (and including x = 0 as the beginning point), figure out which line (that is, which cost equation) is lowest on each interval.

Eliz.
 
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