Question

he cost for producing a certain product is $37 each. The fixed costs are $70,000. The selling price for each product is $72. 1. What is the revenue function? a. R(x) = 37x – 70,000 b. R(x) = 37x c. R(x) = 72x + 70,000 d. R(x) = 72x – 70,000 e. R(x) = 72x 2. What is the profit function? a. P(x) = 72x – 70,000 b. P(x) = 35x – 70,000 c. P(x) = 37x + 70,000 d. P(x) = 35x + 70,000 e. P(x) = 72x + 70,000 . 3. What is the break-even quantity? a. 2,500 b. 4,800 c. 1,846 d. 2,000 e. 4,500 4. What is the break-even point

Answer 1

The revenue function is R(x) = 72x, the profit function is P(x) = (72x - 70,000) - (37x), the break-even quantity is 2,000 units, and the break-even point is $144,000.

Step-by-step explanation:

1. What is the revenue function?

The revenue function can be calculated by multiplying the selling price per product by the quantity sold. In this case, the selling price is $72, so the revenue function is R(x) = 72x, where x represents the quantity sold.

2. What is the profit function?

The profit function is calculated by subtracting the total cost from the total revenue. The total cost includes both the fixed cost and the variable cost per product. In this case, the profit function is P(x) = (72x - 70,000) - (37x).

3. What is the break-even quantity?

The break-even quantity is the point at which the total revenue equals the total cost, resulting in zero profit. To calculate the break-even quantity, set the profit function equal to zero and solve for x. In this case, the break-even quantity is 2,000 units.

4. What is the break-even point?

The break-even point is the value of total revenue and total cost at the break-even quantity. At this point, the firm is neither making a profit nor incurring a loss. In this case, the break-even point is $144,000.

Answer 2

Instructions are listed below

Step-by-step explanation:

Giving the following information:

The Variable unitary cost= $37 each.

The fixed costs are $70,000.

The selling price for each product is $72.

1) revenue function= P*X

Revenue function= 72*x

Option E

2) Profit function= (P-Vc)*X-Fc

Profit function= 35*x-70000

Option B

3) break-even quantity= fixed costs/contribution margin

break-even quantity= 70000/35= 2000 units

Option D

4) break-even point ($)=fixed costs/contribution margin ratio

Contribution margin ratio= contribution margin/P= 0,49

break-even point ($)=70000/0,4861111= $144000