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Outdoor Essentials is planning a new line of solar shower tent kits. For the first year, the fixed costs for setting up production are $22,000.
Outdoor Essentials is planning a new line of solar shower tent kits. For the first year, the fixed costs for setting up production are $22,000. The cost for producing each kit is estimated at $40, and the selling price will be $90 per kit. It is projected that 1500 kits will sell the first year. i) Find and graph the total cost of producing x kits. ii) Find and graph the total revenue from the sale of x kits. Use the same axes as in part (i). iii) Using the same axes as in part (i), find and graph the total profit from the production and sale of x kits. iv) What profit or loss will the company realize if the expected sale of 1500 kits occurs? v) How many kits must the company sell in order to break even? vi) Find all number x of kits sold for which the firm makes a profit that is greater than the first year fixed costs
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