Question
Suppose that the selling price of a company's primary product is 16000.3x dollars per unit when x units are sold every week. (a) Calculate a
Suppose that the selling price of a company's primary product is 16000.3x dollars per unit when x units are sold every week.
(a) Calculate a formula for the total revenue as a function of x. R(x) = __________ dollars per week
(b) Suppose further that the product has fixed costs of 400 dollars and each unit costs 0.75x+1430 dollars per unit to produce, where x is the number of units produced every week. Calculate a formula for the total cost as a function of x.
C(x) = __________ dollars per week
(c) Find the break-even points. Round each value to at least three decimal places.
The larger quantity at which break-even occurs is __________ units per week, with corresponding revenue of __________ dollars per week.
The smaller quantity at which break-even occurs is __________ units per week, with corresponding revenue of __________ dollars per week.
(d) Calculate a formula for the profit function. Recall that profit is the difference between revenue and cost.
Profit: __________ dollars per week
(e) What price will maximize profit? Price: __________ dollars per unit
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