Question

A Company makes and sells sailboats. The company's cost function in thousands of dollars is C(x)=2x+20, and the revenue function in thousands of dollars is R(x) =4x, where x is the number of sailboats. Evaluate and interpret C(5).

Answer 1

C(5) would be the cost to make 5 sailboats, so substitute 5 for 'x'

(2 * 5) + 20
10 + 20

= 30; since the question says the cost is in thousands of dollars, then

C(5) is how much it costs the company to make 5 sailboats, which is $30,000 or $6,000 / sailboat.