Posted by **Mark** on Thursday, January 27, 2011 at 8:45pm.

A manufacturer can produce 8,500 units for a total profit of 47,600.00 dollars, but if he increases his production to 11,500 units, then his profit becomes $65,600.00.

It follows that his fixed cost is? and his net profit per unit produced is?

- Math -
**Reiny**, Thursday, January 27, 2011 at 9:23pm
Treat your information as 2 ordered pairs of the form

(x,p) where x is the number of units, and p is the profit.

So you have (8500, 47600) and (11500, 65600)

slope = (65600-47600)/(11500-8500) = 6

so your equation in the form y = mx + b is

p = 6x + b

sub in the first point

47600 = 6(8500) + b

b = -3400

p = 6x - 3400

Can you interpret this equation?

e.g. What is his "profit" if he makes zero units ?

- Math -
**Mark**, Friday, January 28, 2011 at 3:03pm
I got that far. But I still do not know how to find the fixed cost and net profit from the p(x) equation.

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