Question

A cereal company's cost, in thousands of dollars, is represented by the function C(x)=2x+4500 and its revenue, in thousands of dollars, is represented by the function R(x)=5x. Each box of cereal is represented by x. How much will the company profit if they sell 12000 boxes? Round your answer to the nearest dollar, and do not include the dollar sign in your answer.

Answer 1

Given , revenue function : $R(x)= 5x$

Cost function $C(x) = 2x+4500$

Profit  = Revenue - Cost

Hence, P = R(x) - C(x)

Total revenue for x = 12000 is $R(12000) = 5(12000) = 60000$

Total cost for x = 12000, $C(12000) = 2(12000)+4500 = 28500$

Profit = 60000-28500 = 31500

Answer = 31500