Jeffrey chan

1410009
Math202

Analysis writing assignment

Having a successful business there are many factors to be determined. Financing is one of
them. It is critical for a business to set up a good financial goals that provide the detail of the
products or services we sale and provide. This is the analysis of the Samsung galaxy S5 under
certain scenarios. During this analysis, we are going to find the cost function, price per unit,
feasible range of demand or produces, break-even points, marginal cost, marginal revenue and
the optimal production level while applying the certain fixed cost and the demand function. This
is a stimulation of analyzing if the galaxy s5s production price is worth to be produce at the
production level of 1,000 units per month and what price should it be adjusted in order to have
the maximize profits.
According to the C-net website a galaxy S5s production cost will be $256.The materials
of the phone will costs around $100. For example, the phones display module is around $63, the
fingerprint sensor is $4, the DRAM and Flash memory modules are $33. Beside the materials
costs, the costs of labor is around $150. Suppose that the fixed costs is $7,500 per months which
is including the rent and utilities. The costs function will be 256x + 7500, where x will be the
units we produce. In addition, we can only afford $150,000 per month which including the
materials of the phone, labor, rent and utilities. The amount of units that we can produce under a
restricted value will be 556 units.
Let the demanded of the product is fixed as every months. The demand function will be
x = 9600 - 30p, consider that x is the quantity of the units and p is the price of the units. It can

Jeffrey chan
1410009
Math202

also be reconstructed it into the price function which is 320 - x/30. To identify the revenue
function, we can use the function of price times the number of units. Therefore, the revenue
function is 320x - x2/30. By setting the demand function equal to zero will illustrate the feasible
range of demand. Accordingly, the feasible range of demanded is 0 between 9600 units. In order
to find the profit function, using the revenues function subtract the costs function. Thus, the
profit function is x2/30+64x - 7500. Setting it equal to zero will identify the break-even point
which means the smallest and largest number that could be sold in per months. Therefore, 125
and 1794 units is the smallest and largest number that can be sold in per months.
Determining the marginal revenue and marginal cost function will illustrate the costs to
produces or the revenues at certain level. This data will indicate rather the product is gaining or
losing at that level. Identify the marginal costs and revenue are to take the derivative of the costs
and revenues function. Therefore, the marginal revenue function is 320 x/15 where x consider
is the quantity of the units and the marginal cost function is 256 due to the fact that it is constant.
Assume that the business currently producing 1,000 units per month under the same demand
function. Therefore, the revenues of the production level at 1,000 units will be $253.33. At the
production level of 1,000 units the costs will be 256 because it is constants. Seeing that the costs
of producing is more that the revenues at the production level of 1,000 units. In this case, we
should decrease the production. Identify the optimal production level is needed in order to
maximize the profit. In the purpose of that, reconstructing the profit function by taking the
derivative of it and setting it equal to zero. Consequently, the optimal production level is 960
units which means that is the quantity will maximize the profits.
As a result, the data will ensure if a product is a gain or lose at a certain production level.
In this case, if using the production price of the Samsung galaxy S5 producing at the level of

Jeffrey chan
1410009
Math202

1,000 units will cost more than revenues. For instances, the cost of this level will costs $256, but
the revenues is $253.33. Therefore, we should decrease the production at this level. It will costs
more than the gains. The optimal production level is 960 units. To maximize the profits we
should adjusts the selling prices to $288 if the demand is fixed. Setting the prices to $288 will
give us the highest profits which is $23,220 per month.

Citation
"Galaxy S5 Costs $256 to Build, Says Teardown Report - CNET." CNET. N.p., n.d. Web. 20
Nov. 2014.