Question
You have a start-up company that develops and sells a gaming app for smartphones. You need to analyze your companys financial performance by understanding your
You have a start-up company that develops and sells a gaming app for smartphones. You need to analyze your companys financial performance by understanding your cost, revenue, and profit (in U.S. dollars).
The monthly cost function of developing your app is as follows:
Cx=3x+h
where
Cx is the cost
x is the number of app downloads
$3 is the variable cost per gaming app download
h is the fixed cost
The monthly revenue function, based on previous monthly sales, is modeled by the following function:
Rx=-0.4x2+360x , 0x600
The monthly profit function (in U.S. dollars), Px, is derived by subtracting the cost from the revenue, that is
Px=Rx-Cx
- Based on the first letter of your last name, choose a value for your fixed cost, h.
First letter of your last name | Possible values for h |
AF | $4,0004,500 |
GL | $4,5015,000 |
MR | $5,0015,500 |
SZ | $5,501$6,000 |
Use your chosen value for h to write your cost function, C(x) .
Then, use Px=Rx-Cx to write your simplified profit function.
(20 points)
Chosen h
|
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Cost function C(x)
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Final answer for P(x)
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Show your work below:
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