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

The equation that gives the company's profit per month, P, as a function of the number of units made, x is P = 14x - 2100

Solution:

Selling price of 1 product = $ 84

Monthly cost for rent and bill = $ 2100

Manufacturing cost per unit = $ 70

To find: company's profit per month, P, as a function of the number of units made

Let "x" be the number of units made

Let "P" be the company profit per month

Selling price for "x" number of units = 84x

Manufacturing cost for "x" units = 70x

We know that,

Profit = Selling price - manufacturing cost

P = 84x - 70x

P = 14x

We have to subtract the monthly cost for rent and bill to get the actual profit

P = 14x - 2100

Thus the equation that gives the company's profit per month, P, as a function of the number of units made, x is P = 14x - 2100