To establish a driver education school, organizers must decide how many cars, in
ID: 3435176 • 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 $3000. The cost per instructor is $12,000 and one instructor is needed for each car. Tuition for each student is $356. 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 3 cars and serves 250 students, will the school make a profit or a loss? The school will make a:
Explanation / Answer
Annual fixed costs to operate the school are $40,000. The annual cost per car is $4000. The cost per instructor is $12,000 and one instructor is needed for each car.
Tuition for each student is $400
total cost= 40000+ 4000x + 12000x = 40,000 + 16,000x
total revenue = 400y
total profit = 400y - 40,000 - 16,000x
total profit = 400*(4*6*8*2) - 40,000 - 16,000*6 =17600
yes they reach break even and profit is 17600
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