A company that produced toy cars has a monthly cost of $1500 and a marginal cost of $3 per toy car. The company makes $8 per toy car in revenue.

Question

a) find the function, P(x), that represents the profit from selling x toy cars. 

B) what would the profit be from selling 2500 toy cars?

Answer 1

Profit = Revenue - Cost

 

P(x) = 8x - (1500 + 3x) = 8x - 1500 - 3x = 5x - 1500

 

P(2500) = 5(2500) - 1500 = 12,500 - 1500 = $11,000