Question

ou are setting up a part-time business with an initial investment of $21,000. The unit cost of the product is $11.60, and the selling price is $20.00. (a) Find equations for the total cost C (in dollars) and total revenue R (in dollars) for x units.

Answer 1

Total Cost, C(x) = 21000 + 11.60x

Revenue, R(x) = 20(x)

Explanation:

Given the investment, which is fixed cost = $21000

Per unit cost of product = $11.60

Selling price = $20

Total cost is the sum of fixed cost and the variable cost:

Thus, TC = FC + VC

Let the number units = x

C(x) = 21000 + 11.60x

Now the total revenue:

R(x) = 20(x)