Question

jeremy and justine work for a company that receives $45 for each unit of output sold. the company has a variable cost of $25 per item and a fixed cost of $1600. determine a function that models the profit for the company based upon the conditions for revenue and expense

Answer 1

P(x) = 20x - 1600.

Explanation:

The revenue of the company is obtained by selling each unit of output for $45.

So. for x units of output sold the revenue will be given by

R(x) = 45x ....... (1)

Again, the company has the expense of fixed $1600 and another expense of $25 per output of items.

Hence, for x items the cost will be given by

C(x) = 1600 + 25x

Therefore, the function that models the profit of the company based upon the conditions for revenue and cost will be P(x) = R(x) - C(x)

⇒ P(x) = 45x -(1600 + 25x) = 20x - 1600. (Answer)