The Monthly Sales At An Import Store Are Currently 10,000

The Monthly Sales At An Import Store Are Currently 10000 But Are Exp

The monthly sales at an import store are currently $10,000 but are expected to decline over time at a rate given by the differential equation S'(t) = -10t^{2/5} dollars per month, where t is the number of months from now. The store remains profitable as long as monthly sales stay above $8,000. The task is to find a formula for the expected sales in t months and to determine the sales figure two years from now.

Paper For Above instruction

Understanding the dynamics of sales decline is critical for strategic planning and financial forecasting for retail businesses. In this scenario, the store's sales are initially $10,000, with a decreasing rate modeled by a differential equation S'(t) = -10t^{2/5}. The goal is to derive an explicit formula for S(t), the sales at time t, and then predict sales after two years (24 months).

Deriving the Sales Function S(t)

The differential equation given is:

S'(t) = -10t^{2/5}

Our task is to find the original sales function S(t). Since the derivative of S(t) with respect to t is known, integrating S'(t) will give S(t), up to an integration constant c:

S(t) = ∫ S'(t) dt + c = ∫ -10t^{2/5} dt + c

Applying the power rule of integration, where ∫ t^{n} dt = (t^{n+1}) / (n+1), for n ≠ -1, we proceed as follows:

S(t) = -10  ∫ t^{2/5} dt + c = -10  (t^{(2/5) + 1} ) / ( (2/5) + 1 ) + c

Calculating the exponent:

(2/5) + 1 = (2/5) + (5/5) = 7/5

Calculating the denominator:

(7/5)

Thus, the integral becomes:

S(t) = -10  (t^{7/5}) / (7/5) + c = -10  (t^{7/5}) * (5/7) + c = - (50/7) t^{7/5} + c

Given the initial condition that at t=0, sales are $10,000, we substitute t=0:

S(0) = - (50/7) * 0^{7/5} + c = 0 + c = 10,000

Therefore, c = 10,000, and the explicit formula for sales after t months is:

S(t) = - (50/7) t^{7/5} + 10,000

Sales Prediction After Two Years

To predict the sales after two years (which is 24 months), substitute t=24 into the formula:

S(24) = - (50/7) * 24^{7/5} + 10,000

Calculating 24^{7/5} involves raising 24 to the power of 7/5. First, compute 24^{1/5} (the fifth root of 24), then raise the result to the 7th power:

The fifth root of 24 is approximately 1.817, because 1.817^5 ≈ 24.0. Raising 1.817 to the 7th power yields approximately 21.764.

Now, compute S(24):

S(24) ≈ - (50/7)  21.764 + 10,000 ≈ -7.1429  21.764 + 10,000 ≈ -155.542 + 10,000 ≈ 9,844.46

The store's sales two years from now are estimated to be approximately $9,844.46, assuming the model holds and no external changes occur.

Assessment of Profitability

Since the store's profitability depends on maintaining sales above $8,000, the model indicates that sales will continue to decline but remain above the profitability threshold for some time. To determine exactly when sales will fall to $8,000, set S(t) equal to 8,000 and solve for t:

8,000 = - (50/7) t^{7/5} + 10,000
- (50/7) t^{7/5} = -2,000
t^{7/5} = (2,000)  (7/50) = (2,000  7)/50 = (14,000)/50 = 280
t = (280)^{5/7}

Calculating (280)^{5/7} requires taking the 7th root of 280, then raising that result to the 5th power:

Since 280^{1/7} ≈ e^{(1/7) ln(280)} ≈ e^{(0.1429) 5.634} ≈ e^{0.807} ≈ 2.24

Then, (2.24)^5 ≈ 2.24^5 ≈ 56.77

Therefore, the sales will drop to $8,000 approximately after 56.77 months, or roughly 4 years and 9 months.

Conclusion

This analysis demonstrates that the store's sales decline following the specified trend, with the formula S(t) = - (50/7) t^{7/5} + 10,000. The store remains profitable for at least 56.77 months, approximately 4 years and 10 months, after which sales fall below the profitability threshold. The prediction for sales after two years indicates a slight decline to approximately $9,844.46, emphasizing the importance of strategic interventions to sustain sales or transition the business before profitability diminishes.

References

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