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evablogger [386]
2 years ago
12

Rebotar Inc.makes basketballs.Their fixed costs are $3,450.

Mathematics
1 answer:
melomori [17]2 years ago
8 0

Answer:

<em>Since the profit is positive, Rebotar not only broke even, they had earnings.</em>

Step-by-step explanation:

<u>Function Modeling</u>

The costs, incomes, and profits of Rebotar Inc. can be modeled by means of the appropriate function according to known conditions of the market.

It's known their fixed costs are $3,450 and their variable costs are $12 per basketball produced and sold. Thus, the total cost of Rebotar is:

C(x) = 12x + 3,450

Where x is the number of basketballs sold.

It's also known each basketball is sold at $25, thus the revenue (income) function is:

R(x) = 25x

The profit function is the difference between the costs and revenue:

P(x) = 25x - (12x + 3,450)

Operating:

P(x) = 25x - 12x - 3,450

P(x) = 13x - 3,450

If x=300 basketballs are sold, the profits are:

P(300) = 13(300) - 3,450

P(300) = 3,900 - 3,450

P(300) = 450

Since the profit is positive, Rebotar not only broke even, they had earnings.

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