Kayla H. answered • 10/03/17

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Hi Jenna,

Profit is equal to the total cost minus total revenue. In this case, we can come up with the cost equation, which is fixed cost + variable cost.

TC = 12,800 + 148Q (Q = units of product)

TR = 260Q

Therefore, the answer for a. is: 260(182) - 12800 - 148(182) = $26,936

b. For part b., we simply need to change the numbers in the above equation.

Profit = 260(165) - 16,200 - 157.40(165) = $25,971