Problem Statement In 2010 a local construction company built a total of 52 homes for a total cost of $4.3 million. By the end of 2010 they sold all 52 homes for a revenue of $8 million thus making a profit of $3.7 million. Since the company made a profit of $3.7 million, their net profit margin was Profit 3.7 Revenue 8 which indicates they made $0.4625 for each dollar profit. Since 2010 the cost of building materials and labor has steadily increased at a rate of $0.31 million per year. The selling price of housing has also increased but at a slower rate of $0.08 million per year. 46.25% Assume the cost of building homes and the revenue generated by selling the homes can be modeled by the following linear equations. Cost in year x : C(x) = 0.31x +4.3 millions of dollars Revenue in year x : R(x) = 0.08x + 8 millions of dollars Note the variable x represents the number of years since 2010.
