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To establish a driver education school, organizers must decide how many cars, in

ID: 3154648 • Letter: T

Question

To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $2000. The cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each student is $360. Let x be the number of cars and y be the number of students.

a). Write an expression for total cost. The Total Cost expresson is: __________

b). Write an expression for total revenue. The Total Revenue Expression is: ____________.

c). Write an expression for total profit. The Total Profit expression is: ______________

d). If the school uses 5 cars and serves 200 students, will the school make a profit or a loss? The school will make a _____________

Explanation / Answer

To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $2000. The cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each student is $360. Let x be the number of cars and y be the number of students.

a). Write an expression for total cost. The Total Cost expresson is:

=30000+(2000+11000)x

Total Cost =30000+13000x

b). Write an expression for total revenue. The Total Revenue Expression is:

Total Revenue =360y

c). Write an expression for total profit. The Total Profit expression is:

Total Profit = Total Revenue - Total Cost

Total Profit =360y – (30000+13000x)

d). If the school uses 5 cars and serves 200 students, will the school make a profit or a loss? The school will make a _____________

Total Profit =360*200 – (30000+13000*5)

= -23000

The school will make a loss of $23000.

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