Question

Engineering estimates show that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $120 per unit and variable selling expense is expected to be $15 per unit. The fixed costs applicable to the new product are estimated to be $2800 per period and capacity per period is 100 units.

Show an algebraic expression of the revenue function and the cost function.

Answer 1

2800