A company has introduced two new products to the market. The revenue generated by product A was $63,000 in the first year, and the revenue increases by 3.5% every year.The revenue generated by product B was $81,000 in the first year, and the revenue increases by 2.1% every year.Which function can the company use to determine its total revenue from the two products, R(x), after they have been on the market for x years, and approximately what will be the revenue generated by sales of the products after 6 years?R(x) = 9,000[7(1.035)x + 9(1.021)x]; $635,580R(x) = 9,000[7(1.035)x + 9(1.021)x]; $169,200R(x) = 9,000[9(1.035)x + 7(1.021)x]; $170,936R(x) = 9,000[9(1.035)x + 7(1.021)x]; $688,050
Question
Answer:
The general revenue function can be described byr(x) = r0·(1+i)^x
where r0 is the first-year revenue and i is the rate of increase each year.
a) The total revenue will be the sum of the revenues from each product.
R(x) = 63000·1.035^x + 81000·1.021^x
b) After the products have been on the market for 6 years, the revenue predicted by this model is
R(6) = $63000·1.035^6 + 81000·1.021^6 ≈ $169,200
solved
general
10 months ago
1326