Jua Kali Products Ltd has been in operation for the last 10 years. Its annual revenue and cost functions take form of quadratic functions. The following data was obtained from the records of the company. Year 2017 2018 2019 Units produced and sold (000) 5 10 15 Revenue (sh000) 1900 3600 5100 Cost (sh000) 7525 7100 6725 Required: The revenue and cost functions (10 marks) The breakeven number of units (5 marks)​

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Answer:

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The revenue function is y₁ = –4x² + 400x, the cost function is y₁ = x² – 100x + 8000, and the break-even number of units is 20 or 80.

What is a quadratic equation?

It is a polynomial that is equal to zero. Polynomial of variable power 2, 1, and 0 terms are there. Any equation having one term in which the power of the variable is a maximum of 2 then it is called a quadratic equation.

Jua Kali Products Ltd has been in operation for the last 10 years.

Its annual revenue and cost functions take the form of quadratic functions.

The following data was obtained from the records of the company.

Year          Unit Sold            Revenue             Cost

2017              5                        1900                 7525

2018             10                       3600                7100

2019             15                        5100                6725

We know that the quadratic equation is given as

[tex]\rm y = ax^2 + bx + c[/tex]

Let y₁ be the revenue function, y₂ be the cost function and x be the unis sold.

Then the revenue function will be

1900 = 25a + 5b + c  ...i

3600 = 100a + 10b + c  ...ii

5100 = 225a + 15b + c  ...iii

From equations (i), (ii), and (iii), we have

a = –4, b = 400, and c = 0

Then the revenue function will be

y₁ = –4x² + 400x

Similarly, the cost function will be

7525 = 25a + 5b + c  ...1

7100 = 100a + 10b + c  ...2

6725 = 225a + 15b + c  ...3

From equations 1, 2, and 3, we have

a = 1, b = –100, and c = 8000

Then the cost function will be

y₁ = x² – 100x + 8000

For the break-even units, the cost function and the revenue function will be equal. Then we have

[tex]\begin{aligned} x^2 -100x + 8000 &= -4x^2 + 400x\\\\5x^2 -500x + 8000 &= 0\\\\x^2 - 100x + 1600 &= 0\\\\x^2 - 80 x - 20x + 1600 &= 0\\\\x(x-80) - 20 (x-80) &= 0\\\\(x-80)(x-20) &= 0\\\\x &= 20, 80 \end{aligned}[/tex]

More about the quadratic equation link is given below.

https://brainly.com/question/2263981