Cindy's Ciders produces and sells spiced apple cider. Cindy has a monthly fixed cost of $3080 and production costs of $3 per gallon of cider. Each gallon of cider sells for $8.50.
a) Find the monthly cost function associated with Cindy's Cider (let x= quantity produced, C=cost).
b) Find the revenue function associated with Cindy's Cider (let x=quantity, R= revenue).
c) How many gallons should be produced and sold monthly for Cindy to break-even?
d) What is Cindy's profit/loss if shes produces and sells 550 gallons of cider?
I need someone to check my work.
a) c(x)= 3x+3080
b) r(x)= 850x (I got 850 because I multiplied 8.50 by 100 to get rid of the decimal.
c) breakeven:
r(x)-c(x) = 850 - 3x+3080
= 847x+380
= 847x/847+3080/847
x= 3.63
d) 847 (550) +3080 = 468930
2 errors
You multiplied the right side of b) by 100 but did not do it to the left side
your equation no would be in cents, but your equation in a) is in dollars --->
mismatching units.
secondly, you forgot the x after the 850 in " r(x)-c(x) = 850 - 3x+3080 "
so:
a) c(x)= 3x+3080
r(x)= 8.50x
at break-even point c(x) = r(x)
8.50x = 3x+3080
etc