Question

A company that makes thing-a-ma-bobs has a start up cost of $18263. It costs the company $1.14 to make each thing-a-ma-bob and the company charges $4.06 for each thing-a-ma-bob. Let x represent the number of thing-a-ma-bobs made. Write the cost function for this company. Write the revenue function for this company. Write the profit function for this company.

Answer 1

• c(x) = 18263 +1.14x
• r(x) = 4.06x
• p(x) = 2.92x -18263

Explanation:

cost function

Cost for x tambs is the sum of start-up cost and per-unit cost multiplied by the number of units.

c(x) = 18263 +1.14x

revenue function

Revenue from the sale of x tambs is the product of their price and the number sold.

r(x) = 4.06x

profit function

Profit from the sale of x tambs is the difference between the revenue and cost:

p(x) = r(x) -c(x)

p(x) = 4.06x -(18263 +1.14x)

p(x) = 2.92x -18263