profit is revenue - cost
break-even is when profit = 0
costs: 45600 + (1/3 x + 444)x = 1/3 x^2 + 444x + 45600
revenue : (2368 - 2/3 x)x = 2368x - 2/3 x^2
now use what you know about parabolas.
Suppose a company has fixed costs of $45,600 and variable cost per unit of
1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2368 − 2/3x dollars per unit.
(a) Find the break-even points.
(b) Find the maximum revenue.
(c) Form the profit function P(x) from the cost and revenue functions.
(d) Find maximum profit.
(e) What price will maximize the profit?
1 answer
1 answer