Calculus question

Question

A manufacturer has a monthly fixed cost of $28,500 and a production cost of $8for each unit produced. The product sells for $11/unit. Find the following functions (in dollars) and compute each profit (in dollars).

(a)

What is the cost function?

C(x) =  

 

 

(b)

What is the revenue function?

R(x) =  

 

 

(c)

What is the profit function?

P(x) =  

 

 

(d)

Compute the profit (loss) corresponding to production levels of 8,000 and 11,000 units.

P(8,000)	=	$
P(11,000)	=	$

Answer 1

C(x) = 28500 + 8x, where x is the number of units produced in a month

R(x) = 11x

P(x) = 11x - (28500 - 8x) = 3x - 28500

P(8000) = 24000 - 28500 = -4500, so we're losing money at a monthly production level of 8000 units.

P(11000) = 33000 - 28500 = 4500