A company produces a product for which the variable cost is $12.25 per unit and the fixed costs are $114,000. The product sells for $22.95 per unit. Let x be the number of units produced and sold. Write the profit P as a function of the number of units sold. (Note: P = R - C)

Question

Lorelei

Mathematics

21 May, 17:07

A company produces a product for which the variable cost is $12.25 per unit and the fixed costs are $114,000. The product sells for $22.95 per unit. Let x be the number of units produced and sold. Write the profit P as a function of the number of units sold. (Note: P = R - C)

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Aileen Burton · Answer 1

Answer: P = 10.7x - 114000

Step-by-step explanation:

Assuming all units produced were also sold,

Let x be the number of units produced and sold.

The company produces a product for which the variable cost is $12.25 per unit and the fixed costs are $114,000. This means that the total cost of producing x units of the product would be

12.25x + 114000

The product sells for $22.95 per unit. This means that the total Revenue from selling x units of the product is 22.95x

Profit = Revenue - Cost

The expression representing the profit is

P = 22.95x - (12.25x + 114000)

P = 22.95x - 12.25x - 114000

P = 10.7x - 114000