Question

A firm produces a product that has the production cost function C(x)=255x+7395 and the revenue function R(x)=340x. No more than 77 units can be sold. Find and analyze the break-even quantity, then find the profit function. The break-oven quantity is units. (Type a whole number.) If the company can produce and sell no more than 77 units, should it do so? A. Yes. Since 77 is greater than the break-even quantity, production of the product can produce a profit. B. Yes. Since 77 is less than the break-even quantity, production of the product can produce a profit. C. No. Since 77 is less than the break-even quantity, production of the product cannot produce a profit. D. No. Since 77 is equal to the break-even quantity, production of the product cannot produce a profit. Write the profit function. P(x)=

Answer 1

The answer is going to be C. No. Since 77 is less than the break-even quantity, production of the product cannot produce a profit.

Explanation: x = units in this equation. X = 77. Imputing the x of 77 into both equations you’ll get an answer to 255x+7395 = 27,030 and the revenue equation you’ll get an answer to 340x = 26,180. The revenue is less than the production cost which makes it actually lose 850 after.