Question

A businesses account has defined its cost and revenue equations as follows

cost:y=0.4×+1260

Revenue:y=0.55×

write a system of linear inequalities to define the profit regions

Answer 1

We know that for the business, the cost is represented by:

Cost: y = 0.4x + 1,260

And the revenue is represented by:

Revenue: y = 0.55x

We have to find the inequality for Profit

Profit = Revenue - Cost

⇒ Profit = 0.55x - (0.4x + 1,260)

⇒ Profit = 0.15x - 1,260

Hence, the equation that represents profit is 0.15x - 1,260