Question

1) A hardware company's cost, in thousands of dollars, is represented by the function C(x)=0.5x+900 and its revenue, in thousands of dollars, is represented by the function R(x)=4x. Each package of nuts and bolts is represented by x. How much will the company profit if they sell 80000 packages? Round your answer to the nearest dollar, and do not include the dollar sign in your answer.

Answer 1

Profit = $279,100

Explanation:

We know

Profit = Revenue - Cost

Given Cost equation and Revenue equation, we can find profit equation. Shown below:

`Profit=Revenue-Cost\\P(x)=R(x)-C(x)\\P(x)=4x-(0.5x+900)\\P(x)=4x-0.5x-900\\P(x)=3.5x-900`

Where x, is the number of packages.

The company will profit when selling 80,000 packages is:

`P(x)=3.5x-900\\P(80000)=3.5(80000)-900=279,100`

Profit = $279,100