Problem 418

Find expressions for the Revenue, Cost, and Profit from selling x thousand items.

Item Price Fixed Cost Variable Cost

7.00, 195,503, -3x^{2} +3480x -100

 

Solution

 

R= 7000x (7 dollars per 1000x items)

C = 195503 – 3x^{2} + 3480x – 100 (fixed cost + variable cost)

C = -3x^{2} + 3480x + 195,403

P = 7000x –(195403 – 3x^{2} + 3480x)

= 7000x – 195403 + 3x^{2} – 3480x

= 3x^{2} – 3520x – 195,403

 

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