Question

The manufacturer of an energy drink spends $1.20 to make each drink and sells them for two dollars the manufacturer also has fixed cost each month of $8000 find the revenue function when X energy drinks are sold

Answer 1

Let X be the number of energy drinks sold.

The manufacturer of an energy drink spends $1.20 to make each drink and sells them for two dollars the manufacturer also has fixed cost each month of $8000.

The manufacturing cost for X energy drinks is

`1.20x`

Fixed cost is $8000.

Therefore, cost function is

`C(x)=1.20x+8000`

Selling price of each drink is $2.

Therefore, the revenue function is

`R(x)=2x`

Hence, the revenue function is

`R(x)=2x`