Question

A company sells each product they make for $84.00. They pay $2,100.00 in monthly costs such as rent and bills as well as $70.00 in manufacturing costs per unit. Which of the equations below gives the company's profit per month, P, as a function of the number of units made, x?

Answer 1

`P=14x-2100`

Explanation:

Since equations are not listed, i will simply figure out the correct answer.

Profit is Income MINUS Cost.

The cost is a fixed cost of 2,100 per month.

Also a variable cost of 70 per unit (x), if x units sold, then variable cost would be "70x"

Total Cost = 2100 + 70x

Now, the income is from sales of each unit. Each unit sells for $84 and if x units sold, company's income would be:

84x

So, profit will be:

Profit = Income - Cost

Profit = 84x - (2100 + 70x)

Profit = 84x - 2100 - 70x

Profit = 14x - 2100

We can write the equation as:

`P=14x-2100`