A​ photo-processing kiosk charges ​$0.30 for each print that it produces. The cost of producing the print is ​$0.08 per print. The overhead cost is ​$45.00 per day to rent

Answer 1

Profit = Revenue minus Cost

P = R-C

Cost = Variable Cost + Fixed Cost

C=VC +FC

VC = .08x

FC = 45

C= .08x+45

R = .3x

where x = number of prints, daily

P= .3x - (.08x +45) = daily Profit in dollars

P = .3x-.08x -45

P= .22x -45

breakeven point is when P=0

when .22x = 45

x = 45/.22 =204.5454...prints

at x>204 daily prints, P>0, with positive Profit

at x<204 daily prints, P<0 and there is a Loss

with this information, maximum profit is infinite with an infinity number of prints daily

but realistic maximums require more information, such as the supply and demand functions