Question
Profit and Loss Analysis. Boxowitz, Inc, a computer firm, is planning to sell a new graphing calculator. For the first year, the fix costs for
Profit and Loss Analysis. Boxowitz, Inc, a computer firm, is planning to sell a new graphing calculator. For the first year, the fix costs for setting up the new production line are $100,000. The variable costs for producing each calculator are estimated at $20. The sales department projects that 150,000 calculators can be sold during the first year at a price of $45 each.
a). Find and graph C(x), thetotal cost of producing x calculators.
b). Using the same axes as in part (a), find and graph R(x), the total revenue from the sales of x calculators.
c). Using the same axes as in part (a), find and graph P(x), the total profit from the production and sale of x calculators.
d). What profit or loss will the firm realize if the expected sale of $150,000 calculators occurs?
e). How many calculators must the firm sell in order to break even?
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