Question

The inventor of a new game believes that the variable cost for producing the game is $0.90 per unit and the fixed costs are $6200. The inventor sells each game for $1.69. Let x be the number of games sold. The total cost for a business is the sum of the variable cost and the fixed costs. Write the total cost C as a function of the number of games sold.

Answer 1

Answer:

Step-by-step explanation:

Let x represent the number of units of games sold.

The inventor of a new game believes that the variable cost for producing the game is $0.90 per unit and the fixed costs are $6200. It means that the total variable cost for x units would be

0.9 × x = 0.9x

The inventor sells each game for $1.69. This means that the total revenue from x units of games sold would be

1.69 × x = 1.69x

The total cost for a business is the sum of the variable cost and the fixed costs. Therefore, the total cost for the number of games sold would be

C = 6200 + 0.9x

Profit = Revenue - total cost

Therefore,

Profit = 1.69x - (6200 + 0.9x)

= 1.69x - 0.9x - 6200

= 0.79x - 6200