Asked by Micheal
Suppose a company has fixed costs of $45,600 and variable cost per unit of
1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2368 − 2/3x dollars per unit.
(a) Find the break-even points.
(b) Find the maximum revenue.
(c) Form the profit function P(x) from the cost and revenue functions.
(d) Find maximum profit.
(e) What price will maximize the profit?
1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2368 − 2/3x dollars per unit.
(a) Find the break-even points.
(b) Find the maximum revenue.
(c) Form the profit function P(x) from the cost and revenue functions.
(d) Find maximum profit.
(e) What price will maximize the profit?
Answers
Answered by
oobleck
profit is revenue - cost
break-even is when profit = 0
costs: 45600 + (1/3 x + 444)x = 1/3 x^2 + 444x + 45600
revenue : (2368 - 2/3 x)x = 2368x - 2/3 x^2
now use what you know about parabolas.
break-even is when profit = 0
costs: 45600 + (1/3 x + 444)x = 1/3 x^2 + 444x + 45600
revenue : (2368 - 2/3 x)x = 2368x - 2/3 x^2
now use what you know about parabolas.
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