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Electronic equipment manufacturer Dynamo Electric Inc. makes several types of su

ID: 3015932 • Letter: E

Question

Electronic equipment manufacturer Dynamo Electric Inc. makes several types of surge protectors. Their base model surge protector has monthly fixed costs of $990. This particular model wholesales for $11 each and costs $5.50 per unit to manufacture. write the function for Dynamo's monthly total costs. C(x) = __________ write the function for Dynamo's monthly total revenue. R(x) = ___________ Write the function for Dynamo's monthly profit. P(x) = ____________ Find the number of this type of surge protector that Dynamo must produce and sell each month to break even. ___________ surge protectors

Explanation / Answer

Cost to manufacturers C(x) = 990 + 5.50x

revenue function : R(x) = 11x

where x is no. of surge protectors

Monthly profit : P(x) = R(x) - C(x) = 11x - (990 + 5.50x) = 5.50x - 990

Break even : P(x) =0

5.50x - 990 =0

x = 990/5.5 = 180

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