Practice
ransverse lire Company produces all types of tires at its factory. Due to fixed costs associated with
the factory, the company starts with a loss of $200,000, or a profit of $200,000, at the beginning
of each month. The first major hurdle the company faces each month is to break even, or reach the point at
which the profit is zero. The tires are sold in batches of 1000. The company earns $40,000 for each batch of
tires they manufacture and sell.
1. Identify the two quantities that are changing in this situation, identify the independent and dependent
quantities, and define the variables for these quantities. Then write an equation to represent the profit
the company will make when they manufacture and sell batches of tires.
2. Use your equation to complete a table for this problem situation.
3. What is the unit rate of change in this problem?
4. How much profit would the company make if they manufactured and sold 3 and one-half batches
(3500 tires)?
5. How many batches of tires does the company have to manufacture and sell to have a profit of $190,000?
6. Construct a graph for the problem situation.
Stretch