find expressions fr the revenue, cost, and profit from selling x thousand items:
item price: $2.00
Fixed cost; $214,448
Variable Cost: -3x^2 + 3480x - 100
COuld anyone help me out? this is for my review for the final exam. ty in advance.:)
A company has monthly fixed costs of $22,000 for its facilities and it costs $280 per unit for each unit that it produces. How many units must the company produce to have an average cost per unit of $480?
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A company has monthly fixed costs of $22,000 for its facilities and it costs $280 per unit for each unit that it produces. How many units must the company produce to have an average cost per unit of $480?
Answer
Sure! I can help you out.
To find the expressions for revenue, cost, and profit from selling x thousand items, we'll use the given information and formulas.
1. Revenue:
The revenue is the total amount of money earned from selling a certain number of items. In this case, the item price is $2.00. So, the revenue can be calculated by multiplying the item price by the number of items sold, which is x thousand items.
Revenue = Item Price * Number of Items Sold
Revenue = $2.00 * x
Therefore, the expression for revenue is: Revenue = 2x.
2. Cost:
The cost consists of two components: fixed cost and variable cost. The fixed cost is a constant amount of $214,448, which doesn't change with the number of items sold.
The variable cost, on the other hand, depends on the number of items sold. The given formula for the variable cost is -3x^2 + 3480x - 100.
So, the total cost can be calculated by summing up the fixed cost and the variable cost:
Total Cost = Fixed Cost + Variable Cost
Total Cost = $214,448 + (-3x^2 + 3480x - 100)
Therefore, the expression for cost is: Cost = -3x^2 + 3480x + 214,348.
3. Profit:
Profit is the difference between revenue and cost. So, we can calculate it by subtracting the cost from the revenue.
Profit = Revenue - Cost
Profit = 2x - (-3x^2 + 3480x + 214,348)
Simplifying the expression for profit, we get:
Profit = -3x^2 + 3478x - 214,348
Therefore, the expression for profit is: Profit = -3x^2 + 3478x - 214,348.
I hope this helps! Let me know if you have any further questions.