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Answer Posted / kitty
In mathematics, the process of finding a straight line that
closely fits a curve (function) at some location. Expressed
as the linear equation y = ax + b, the values of a and b
are chosen so that the line meets the curve at the chosen
location, or value of x, and the slope of the line equals
the rate of change of the curve (derivative of the
function) at that location. For most curves, linear
approximations are good only very close to the chosen x.
Yet much of the theory of calculus, including the
fundamental theorem of calculus and the mean-value theorem
for derivatives, is based on such approximations.
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3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
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