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A small business makes handcrafted lamps. The fixed cost for production setup is $ 5 0 0 , and the variable cost to produce each
A small business makes handcrafted lamps. The fixed cost for production setup is $ and the variable cost to produce each lamp is $ In the first week of operation they sold and accumulated $ in revenue. A week later they sold lamps and accumulated $ Letting P Profit, C Cost, R Revenue, and x number of lamps:
a The Revenue function is
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b The Cost function is
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c The Profit function is
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d The shop only has enough storage space for lamps. Assuming maximum storage capacity on a given day, what is the maximum profit they could accrue on that day? $
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e How many lamps need to be sold to achieve a profit of $
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lamps
f How many lamps must be sold to break even?
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lamps
g If the cost to produce a lamp went up to $ how would the break even quantity be impacted?
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