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UNO [17]
3 years ago
15

A manufacturer has a monthly fixed cost of $110,000 and a production cost of $14 for each unit produced. The product sells for $

20 per unit.
(a) What is the cost function?

C(x) =

(b) What is the revenue function?

R(x) =

(c) What is the profit function?

P(x) =

(d) Compute the profit or loss corresponding to a production level of 12,000 and 23,000 units. (Input a negative value to indicate a loss.)

at 12,000 units $ ______

at 23,000 units $______
Mathematics
1 answer:
vova2212 [387]3 years ago
5 0

Answer:

Cost function C(x) == FC + VC*Q

Revenue function R(x) = Px * Q

Profit function P(x) =(Px * Q)-(FC + VC*Q)

P(12000) = -38000 Loss

P(23000) = 28000 profit

Step-by-step explanation:

Total Cost is Fixed cost plus Variable cost multiplied by the produce quantity.  

(a)Cost function

C(x) = FC + vc*Q

Where  

FC=Fixed cost

VC=Variable cost

Q=produce quantity

(b)

Revenue function

R(x) = Px * Q

Where  

Px= Sales Price

Q=produce quantity

(c) Profit function

Profit = Revenue- Total cost

P(x) =(Px * Q)-(FC + vc*Q)

(d) We have to replace in the profit function

<u>at 12,000 units </u>

P(12000) =($20 * 12,000)-($110,000 + $14*12,000)

P(12000) = -38000

<u>at 23,000 units </u>

P(x) =($20 * 23,000)-($110,000 + $14*23,000)

P(23000) = 28000

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