Question

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Answer 1

9514 1404 393

Answer:

  64r -48r -144

Step-by-step explanation:

The January cost expression is ...

  62p -48p -144 -432 = profit

The cost is identified as having 3 components, so the profit will have 4 components:

  (selling price)×p - ((cost per unit)×p +(fixed monthly cost)) -(first month startup cost) = profit

Comparing this to the given equation, we identify the components as ...

  selling price = 62

  cost per unit = 48

  fixed monthly cost = 144

  first month startup cost = 432

We note that 432 = 3×144, so is consistent with the description of startup costs.

Increasing the selling price by $2 will raise it from 62 to 64. In February, the initial month startup cost disappears, so the profit equation becomes ...

  (selling price)×r - ((cost per unit)×r +(fixed monthly cost)) = profit

  64r -48r -144 = profit