Math

posted by .

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 -

    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 -

    I got that far. But I still do not know how to find the fixed cost and net profit from the p(x) equation.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Accounting

    I am having the worst time: I need to build a four year projected balance sheet. I've already done my four year profit projection and was wondering if someone could help me with the balance sheet. I did year one, can't go any further: …
  2. algebra

    We did not find results for: suppose a company manufactures MP3 players and sell them to retailers for $98 each. it has a fixed cost of $262,500 related to the production of the MP3 players and the cost per unit is $23 what is the …
  3. math

    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. fixed cost is?
  4. New Age Math

    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. What is the fixed cost and net profit per unit produced is?
  5. math

    A factory can produce two products, x and y, with a profit approximated by P = I think it's b but I'm not really sure. Can someone show me how to do this or let me check my answer?
  6. math

    machines A &B. Model A machines each cost $200 to make at a profit of $25 each. Model B cost $3oo to make at a $40 profit. Total number of machines do not exceed 2500 a month. Company has no more $600,000 per month for manufacturing …
  7. Computer Programming

    I'm trying to create a vba code that solves this problem: 50 apartment units rent for 600 a month, for each 40 dollar increase in rent a unit becomes unoccupied. I want to find the max profit and number of units at that number. Sub …
  8. college algebra

    A manufacturer produces a product at a cost of $26.80 per unit. The manufacturer has a fixed cost of $500.00 per day. Each unit retails for $37.00. Let x represent the number of units produced in a 5-day period. Write the profit P …
  9. maths

    A company is planning to manufacture and sell a new headphone set. After conducting extensive market surveys, the research department provide the following estimates: Marginal costs function: c^' (x)=RM(40+0.4x) where x is the quantity …
  10. MATH PRECAL HELP

    Business. The profit, in thousands of dollars, for a product is p(X)=-x^2+140x-4700 where x is the production level in hundreds of units. Find the production level that maximizes the profit. Find the maximum profit. The maximum profit …

More Similar Questions