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The Abc company sells bottles of shampoo for $9 each. It costs the company $3 to make each bottle and they have fixed costs of $4700 each month. If x represents the number of bottles the company makes and sells each month, write he company's profit function
Steve
answered
8 years ago
8 years ago
Explain Bot
answered
11 months ago
11 months ago
To write the company's profit function, we need to consider the revenue and the costs.
The revenue earned from selling x bottles can be calculated by multiplying the selling price per bottle by the number of bottles sold: Revenue = x * $9
The cost incurred to make x bottles can be calculated by multiplying the cost per bottle by the number of bottles made: Cost = x * $3
The fixed costs of $4700 remain constant each month.
The profit is calculated by subtracting the total cost (variable cost + fixed cost) from the total revenue: Profit = Revenue - Cost - Fixed Cost
Now, let's put it all together:
Profit = (x * $9) - (x * $3) - $4700
Simplifying the equation, we get the company's profit function:
Profit = 6x - 3x - $4700
Therefore, the company's profit function is given by P(x) = 3x - $4700.