Math 1111  Project Two

   50 points ---4 points each

A business purchases a piece of equipment for $30,000.  After 15 years, the equipment will have to be replaced.  Its value at that time is expected to be $1,500. 

1.  Write a linear equation giving the value, y, of the equipment in terms of x, the number of years after it was purchased.

2.  What is the value of the equipment 5 years after it was purchased

Georgia Highlands College had enrollments of 2401 students in 2001 and 4351 students in 2007. 

3.  Assuming the enrollment growth is linear, what is the slope of the linear model?

4.   Explain the meaning of the slope in the context of the given situation. 

5.  Assuming the enrollment growth is linear, find a linear equation that gives the enrollment y in terms of the year x. 

6.  Use your linear model to predict the enrollment at Georgia Highlands College in 2008.

The sales per share for Starbucks Corporation were $6.97 in 2001 and $8.47 in 2002.  

7.  Using only this information, write a linear equation that gives the sales per share y in terms of the year, x.

8.  Predict the sales per share for 2008. 

A roofing contractor purchases a shingle delivery truck with a shingle elevator for $36,500.  The vehicle requires an average expenditure of $5.25 per hour for fuel and maintenance, and the operator is paid $11.50 per hour.

9.  Write a linear equation giving the total cost C of operating this equipment for x hours.  (Include the purchase cost of the equipment)

10.  Assuming that customers are charged $27 per hour of machine use, write an equation for the revenue R derived from x hours of use.

11.  Use the formula for profit (P(x) = R(x) - C(x))  to write an equation for the profit derived from x hours of use.

12.  Use the result from #11 to find the break-even point--that is, the number of hours this equipment must be used to yield a profit of $0.