In 1995 the Solar Electric Company showed a profit of $3.45 per share, and it expects this figure to increase annually by $0.25 per share. If the year 1995 corresponds to x=0, and successive year correspond to x = 1, 2, 3, and so on, find the equation y = mx + b of the line to allows the company to predict its profit y dollars per share in future years. Sketch the graph this equation and find the predicted profit per share in 2001.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?