Section 1.3
Linear Functions and Math Models
Simple Depreciation
Example 1:
In 2000, the B&C Company installed a new machine in one of its factories at
a cost of $250,000.
The machine is depreciated linearly over 10 years with a scrap value
of $10,000.
a.
Find the rate of depreciation for this machine.
b.
Find an expression for the machine’s book value in the
t
th year of use (0
t
≤
10).
≤
c.
Find the machine’s book value at the end of the 7
th
year.
Linear Cost, Revenue and Profit Functions
If
x
is the number of units of a product manufactured or sold at a company then,
the
cost function
,
C
(
x
), is the total cost of manufacturing
x
units of the product,
the
revenue function
,
R
(
x
), is the total revenue realized from the sale of
x
units of the
product, and the
profit function
,
P
(
x
), is the total profit realized from manufacturing and
selling
x
units of the product.
Fixed costs
are costs that remain more or less constant regardless of the company’s
activity level.
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 Fall '10
 AbdelnourAhmedZaid
 Math, B&C Company

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