Asked by Mark
A manufacturer can produce 8,500 units for a total profit of 47,600.00 dollars, but if he increases his production to 11,500 units, then his profit becomes $65,600.00.
It follows that his fixed cost is? and his net profit per unit produced is?
It follows that his fixed cost is? and his net profit per unit produced is?
Answers
Answered by
Reiny
Treat your information as 2 ordered pairs of the form
(x,p) where x is the number of units, and p is the profit.
So you have (8500, 47600) and (11500, 65600)
slope = (65600-47600)/(11500-8500) = 6
so your equation in the form y = mx + b is
p = 6x + b
sub in the first point
47600 = 6(8500) + b
b = -3400
p = 6x - 3400
Can you interpret this equation?
e.g. What is his "profit" if he makes zero units ?
(x,p) where x is the number of units, and p is the profit.
So you have (8500, 47600) and (11500, 65600)
slope = (65600-47600)/(11500-8500) = 6
so your equation in the form y = mx + b is
p = 6x + b
sub in the first point
47600 = 6(8500) + b
b = -3400
p = 6x - 3400
Can you interpret this equation?
e.g. What is his "profit" if he makes zero units ?
Answered by
Mark
I got that far. But I still do not know how to find the fixed cost and net profit from the p(x) equation.
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