Question

A cereal factory has weekly fixed costs of $48,000. It costs $1.37 to produce each box of cereal. A box of cereal sells for $3.99. Express the profit function p(x) that gives the total weekly profit from x boxes of cereal.

Answer 1

cost for x boxes = 1.37x
fixed cost regardless of x: 48000
Income for x boxes = 3.99x

Profit = income - total costs
p(x) = 3.99x - (48000 + 1.37x)