2. You are the owner of a small business where you sell handmade face masks. When...
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2. You are the owner of a small business where you sell handmade face masks. When the pandemic started you were able to purchase materials cheaper, but as demand increased for masks the cost of materials has gone up with it. You are trying to determine how much the cost of materials has changed and whether you need to adjust your price accordingly. The table below gives the amount you have spent on materials each month since you started your business. (Assume you sell the same number of masks and have purchased the same amount of materials each month). Month 0 2 3 4 $162 Cost of Materials $107 $131 $128 $156 a. Find the average rate of change in cost between month 0 and month 1 of your business being open. Interpret what this means in context of the problem. b. Find the average rate of change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. c. Find the best approximation you can to the instantaneous rate of change at month 4 of your business being open. Interpret what this means in context of the problem. d. Find the relative change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. e. When you started selling masks, you charged $6.75 per mask and have kept that price the same through month 4. You decide that you need to increase your price due to the increased cost of materials, and you would like to leave it at that price for the next few months. Using the information from the table and your answers to parts a through c, determine what you think your new price should be. The answer you give will be unique Activa 2. You are the owner of a small business where you sell handmade face masks. When the pandemic started you were able to purchase materials cheaper, but as demand increased for masks the cost of materials has gone up with it. You are trying to determine how much the cost of materials has changed and whether you need to adjust your price accordingly. The table below gives the amount you have spent on materials each month since you started your business. (Assume you sell the same number of masks and have purchased the same amount of materials each month). Month 0 2 3 4 $162 Cost of Materials $107 $131 $128 $156 a. Find the average rate of change in cost between month 0 and month 1 of your business being open. Interpret what this means in context of the problem. b. Find the average rate of change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. c. Find the best approximation you can to the instantaneous rate of change at month 4 of your business being open. Interpret what this means in context of the problem. d. Find the relative change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. e. When you started selling masks, you charged $6.75 per mask and have kept that price the same through month 4. You decide that you need to increase your price due to the increased cost of materials, and you would like to leave it at that price for the next few months. Using the information from the table and your answers to parts a through c, determine what you think your new price should be. The answer you give will be unique Activa 2. You are the owner of a small business where you sell handmade face masks. When the pandemic started you were able to purchase materials cheaper, but as demand increased for masks the cost of materials has gone up with it. You are trying to determine how much the cost of materials has changed and whether you need to adjust your price accordingly. The table below gives the amount you have spent on materials each month since you started your business. (Assume you sell the same number of masks and have purchased the same amount of materials each month). Month 0 2 3 4 $162 Cost of Materials $107 $131 $128 $156 a. Find the average rate of change in cost between month 0 and month 1 of your business being open. Interpret what this means in context of the problem. b. Find the average rate of change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. c. Find the best approximation you can to the instantaneous rate of change at month 4 of your business being open. Interpret what this means in context of the problem. d. Find the relative change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. e. When you started selling masks, you charged $6.75 per mask and have kept that price the same through month 4. You decide that you need to increase your price due to the increased cost of materials, and you would like to leave it at that price for the next few months. Using the information from the table and your answers to parts a through c, determine what you think your new price should be. The answer you give will be unique Activa 2. You are the owner of a small business where you sell handmade face masks. When the pandemic started you were able to purchase materials cheaper, but as demand increased for masks the cost of materials has gone up with it. You are trying to determine how much the cost of materials has changed and whether you need to adjust your price accordingly. The table below gives the amount you have spent on materials each month since you started your business. (Assume you sell the same number of masks and have purchased the same amount of materials each month). Month 0 2 3 4 $162 Cost of Materials $107 $131 $128 $156 a. Find the average rate of change in cost between month 0 and month 1 of your business being open. Interpret what this means in context of the problem. b. Find the average rate of change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. c. Find the best approximation you can to the instantaneous rate of change at month 4 of your business being open. Interpret what this means in context of the problem. d. Find the relative change in cost between month 0 and month 4 of your business being open. Interpret what this means in context of the problem. e. When you started selling masks, you charged $6.75 per mask and have kept that price the same through month 4. You decide that you need to increase your price due to the increased cost of materials, and you would like to leave it at that price for the next few months. Using the information from the table and your answers to parts a through c, determine what you think your new price should be. The answer you give will be unique Activa
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a Average rate of change between month 0 and month 1 Cost difference 156 Cost at month 1 Cost at month 0 Time difference 1 month Month 1 Month 0 Avera... View the full answer
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Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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