Math 142 Section 1.2 Examples Example 1: Suppose we are opening a cat adoption clinic. For each month, the cost of care for a cat is $60. For all other costs, we pay $750 for the month. Assuming the cost is linear, write a formula for the cost of the cat clinic for one month. Example 2: A sandwich shop owner is calculating her weekly cost. When she makes 30 sandwiches in a week, her cost is $140. When she makes 50 sandwiches in a week, her costs jump to $200. Assuming the cost is linear, write the cost function for the week. Math 142 Section 1.2 Examples Example 3: In the sandwich shop above, the owner sells each sandwich for $6. Assuming the revenue is linear, what is the revenue function? What is the profit function for the sandwich shop? Example 4: How many sandwiches must the owner sell in order to break even? Math 142 Section 1.2 Examples Example 5: In our cat clinic, when we adopt out 33 cats our revenue is $2790. Assuming the revenue is linear, how many cats must we adopt out to break even? Example 6: Suppose the quantity demanded of an alarm clock is 48,000 when it costs $8. When it costs $12, demand drops to 32,000 alarm clocks. Find the price-demand equation, assuming it’s linear. How much are the clocks going for if demand is 40,000 units? How many will be demanded if they cost $14? Math 142 Section 1.2 Examples Example 7: A supplier of the alarm clocks will not manufacture them if the price is less than $17. The supplier will make 75,000 alarm clocks if the price is $24.50. Find the price-supply equation, assuming it is linear. Given the demand from the previous example, what is the equilibrium quantity? What is the equilibrium price? Example 8: The demand equation for cat food 3x + 5p = 15, where p is the price and x is the number of thousands of cat toys. What is the revenue equation for the cat toy manufacturer? Example 9: How many cat toys should be manufactured in example 8 to maximize revenue? How much should we charge?