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Hello, could someone please help me solve parts 1) and 2) of this question in full, detailed step-by-step working out? Thank you so much! A
Hello, could someone please help me solve parts 1) and 2) of this question in full, detailed step-by-step working out? Thank you so much!
A farm produces cheese and sells it by weight. The corresponding revenue function is R(x) = 98: and the daily cost function is C(x) = 44 + 15320.85 where R(x) and C() are in euros and I denotes the weight of cheese sold, in kilograms. For practical reasons (milk supply, storage and display space), the maximum amount of cheese that the farm can produce and sell daily is 34.5 kilograms. 1) State an interval of length at most 10 grams that contains a break-even point for the sales of cheese, where the break-even point is expressed in kilograms. Explain how you know this interval contains a break-even point. 2) Prove that the sale of cheese will produce a maximum profit. Hence, find how many kilograms of cheese should be sold to maximise profit. In addition, in order to avoid the worst possible financial situation, the farmers would also like to know selling how many kilograms of cheese will result in the greatest loss. In order to answer this question, find how many kilograms of cheese sold will minimise profit". The revenue function of a product describes the amount of money generated by the sales of a certain quantity of the product. It is obtained by multiplying the quantity of product sold by the price function. For instance, the most common revenue function is y = bx, where yis the total revenue, b is the selling price per unit of sales, and x is the number of units sold. Note that the revenue function does not take into account the costs (but the profit does, see below). " The cost function of a product measures the amount of money required to be spent to sell a certain amount of the product. It is obtained by adding the fixed cost (for instance: store rental, utility bills), and the variable cost (for instance: the supplies needed to make the product). " The break-even point occurs when the revenue is equal to the cost of a product. When a company breaks even, it neither wins nor loses money as the revenue exactly balances the cost associated to that product. "Profit is the difference between Revenue and Cost, namely P(2) = R(x) - C(x).A negative profit corresponds to a financial lossStep by Step Solution
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