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21 votes
21 votes
Question

The manufacturer of pencils spends $0.05 to make each pencil and sells them for 0.25. The manufacturer also has fixed
costs each month of $2000.
Find the revenue function R when x pencils are manufactured.

User Eduardo Vazquez
by
2.9k points

1 Answer

21 votes
21 votes

Answer:C(x) = 2000+ 0.05 x

Step-by-step explanation: Cost (C) = fixed cost + (cost per pencil x number of pencils)

Since:

Fixed cost: $2000

Cost per pencil : $0.05

Replacing with the values given:

C(x) = 2000+ 0.05 x

Where x is the number of pencils manufactured.

Feel free to ask for more if needed or if you did not understand something.

User Spir
by
3.2k points
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