Two fraternities, Sig Ep and Ep Sig, plan to raise money jointly to benefit homeless people on Long Island. They will sell Yoda vs. Alien T-shirts in the student center, but are not sure how much to charge. Sig Ep treasurer Augustus recalls that they once sold 40 shirts in a week at $7 per shirt, but Ep Sig treasurer Julius has solid research indicating that it is possible to sell 240 per week at $2 per shirt.

Question

If that is the problem how do i find the REVENUE FUNCTION? and the PROFIT FUNCTION?

Answer 1

Although this is not my area of expertise, I assume the revenue is the amount of income (shirts sold times price).

You cannot find the profit unless you know the original cost of the shirts. Subtract cost from revenue for profit.

I hope this helps. Thanks for asking.