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21 February, 18:46

A company manufactures and sells novelty Mugs. the manufacturing cost consist of a fixed cost of R8000 and a variable cost of R15 rand per mug. the mugs are sold at R35 each. assume a linear profit function. determine the profit function

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  1. 21 February, 18:54
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    Ok so

    8000=cost

    profit-8000

    then

    another cost is 15rand per mug

    but profit of 35 rand

    35-15=20

    profit of 20rand per mug

    profit=R20m-8000

    where m=number of mugs sold

    (R20 means 20 rand)

    f (m) = R20m-8000
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