As Sales Manager for ISee You Productions, you are planning to review the prices you charge clients for television advertisement development. You currently charge each client a development fee of $10,800. With this pricing structure, 1See You is able to sign 18 contracts per month. This is down from 42 contracts, which was the figure last
year when your company charged each client only $6,000.
(a) Construct a linear function that yields the development fee p that ISeeYou should charge in order to sign a contracts per month
a ॥
p(a) = [
X
(b) Find the total revenue R ISeeYou obtains by signing a contracts.
R() =
Recycle
(c) The costs to See You Productions are estimated as follows:
Fixed costs $72,000 per month
Variable costs: 1,2009 dollars (when a contracts are signed)
Express See You Productions' monthly cost as a function of the number of contracts.
C(q) = 0
high sc
(d) Express See You Productions monthly profit as a function of the number of contracts.
Pa) =
x
Settin
(c) How many contracts could I SeeYou sign to break even? (Enter the lower value first.)
ISee You breaks even when they sign
Ixor
X contracts