A manufacture of CD player has monthly fixed cost of 8600 and variable cost of 55 per unit for one particular model. The company sells this model to dealers for 115 each. Which is their function for the profit. Please show all work.

Answer 1

income = 115 n
cost = 8600 + 55 n
so
profit = 115 n - 8600 - 55 n
= 60 n - 8600

That means we do not start making money until we sell 8600/60 = 143 1/3 of the players. After that we will make 60 dollars per unit.