Answer:
C(x) = 0.1x+23000
Step-by-step explanation:
Given that a company sells doughnuts. They incur a fixed cost of $23000 for rent, insurance, and other expenses. It costs $0.1 to produce each doughnut. The company sells each doughnut for $0.2.
Let X be the no of units produced
Then we have variable cost = 0.1x
Fixed cost = 23000 (irrespective of value of x)
Total cost
where C represents the total cost and x no of units produced.
Revenue function would be
assuming all doughnuts are sold.
Profit function would be