Question

Justin started a lawn service business. His rate to maintain an average size lawn is $35. It costs Justin $750 to start the business. And he estimates that his cost per lawn is $1.50. Write the cost function in terms of c(x) the revenue terms of r(x) and the profit function in terms p(x)

Answer 1

Explanation:

Cost function: Fixed costs+ Variable costs

In this case Justin will have to pay $750 to star the business, this is his fixed cost. And then, he will have to pay $1,50 per each lawn, this is his variable cost because it depends on the number of lawns he sells.

C(x)= $750+$1,50x

Revenue function (R(x)):

R(x)= Price * Number of units sold (x)

R(x)= $35*x

Profit function ((P(x))= Revenue function (R(x))-Cost function (C(x))

P(x)= $35x- [$750+$1,50x]

P(x)= $33,5-$750