Vincent wants to determine the profit he makes on each pencil he sells. Vincent can sell 2 pencils for x dollars, and it costs y dollars to make 4 pencils.

Question

Determine a simplified expression for the profit Vincent makes on each pencil. Leave your answer as a single fraction.

Answer 1

Revenue = R = R(p) = (x/2)p where p = number of pencils

Cost = C = C(p) =(y/4)p

Profit = P(p) = R-C = [x/2 -y/4]p

or P = [(2x-y)/2]p