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Quadratic Formula

Suneil Randhawa

GBA 5212

Chevrolet Car Dealership

The quadratic formula will be very useful in my scenario at a car dealership.

The quadratic formula can be used to calculate the values of the cost in production and or distribution as well as the revenues from the car sales.

This will help the dealership to make sure they are making the correct profit and if not can see where they are lacking.

Situation

Here is one of the situations where Quadratic formula can help my dealership realize whether or not it is making profits. For example, my dealership sells each car for $30,000 per unit. The car manufactures fixed costs are $3,600,000 per year, whereas the variable costs are $7500 per car. So we are figuring out the number of cars our dealership should sell in a year to make $100 million profits at the end of the year.

Profits= Total Revenues – Total costs

Total Revenues= price of each car times the number of cars sold (x)

Total costs=fixed costs + variable costs (i.e., cost of producing each car times the number of cars produced)

100,000,000=30,000X – (3,600,000 + 7500X)

103,600,000 = 22,500x

X= 4,604.44

Implementation

This implies that for Chevrolet to make a profit of $100 million in a year, it will have to produce and sell at least 4604 cars. With this information, Chevrolet may set its monthly targets, work hard to increase its sales, as well as save them from overproduction problem.

Part 3

After brushing up on the topic of quadratic formula, I feel like I can be a more rational and responsible person.

I now see quadratic expressions as useful tools that everyone should be familiar with.

I realized that quadratic expression is very realistic in our every day life; as a result, I can apply it even in my monthly expenditures.

In a business aspect this knowledge of the use of this formula is very key to the success of all MBA graduates. You can use this information to enhance the business you will be working for exponentially.

References

Ignaciuk, P., & Bartoszewicz, A. (2012). Linear-quadratic optimal control of periodic-review perishable inventory systems. IEEE Transactions on Control Systems Technology, 20(5), 1400-1407.

Koo, D. (2013). Elements of optimization: with applications in economics and business. Springer Science & Business Media.

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