6 The cost and revenue functions for producing and selling x units of a product

Question

6 The cost and revenue functions for producing and selling x units of a product are given. Cost and revenue are expressed in dollars. C (x)=155x+24,750 R ( x)= 205 a. Find the number of units that must be produced and sold to break even. At this level, what is the dollar amount coming in and going out? b. Write the profit function from producing and selling x units of the product. a. What is the number of units that must be produced and sold to break even? nothing units What is the dollar amount coming in and going out? $ nothing b. What is the profit function? You invested

Explanation / Answer

Profit = Revenue - Cost
Thus Profit (P) = 205x - (155x + 24750) = 50x- 24750;
For break even, profit =0; Thus 50x = 24750 meaning x= 24750/50 = 495
The number of units that must be produced and sold to break even is = 495;
At this level, the dollar amount coming in = dollar amount going out = 205*495= 101475;

The profit function for producing and selling 'x' units of the product (as obtained above) is = 50x-24750;

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