The cost to produce one compact disc is $1.75 plus a one-time fixed cost of $2900. The revenue received from selling one compact disc is $10.Profit equals revenue minus cost. Write a formula that calculates the profit P from selling x compact discs.
The formula that calculates the profit P from selling x compact discs can be expressed as:
P = (Revenue per unit * Number of units sold) - Total cost
Given that the revenue received from selling one compact disc is $10, and the cost to produce one compact disc is $1.75 plus a one-time fixed cost of $2900, we can substitute these values into the formula:
P = ($10 * x) - ($1.75 * x + $2900)
Simplifying further, we get:
P = $10x - $1.75x - $2900
To calculate the profit from selling x compact discs, we need to subtract the total cost from the total revenue.
The total cost is given by the sum of the variable cost per disc and the fixed cost:
Total Cost (TC) = (Cost per disc) * (Number of discs) + (Fixed cost)
The total revenue is given by the product of the price per disc and the number of discs:
Total Revenue (TR) = (Price per disc) * (Number of discs)
Profit (P) can be calculated by subtracting the total cost from the total revenue:
Profit (P) = Total Revenue - Total Cost
Substituting the given values:
- Cost per disc: $1.75
- Fixed cost: $2900
- Price per disc: $10
- Number of discs: x
The formula to calculate the profit from selling x compact discs would be:
P = (10 * x) - (1.75 * x + 2900)
Simplifying the formula further:
P = 10x - 1.75x - 2900
Therefore, the profit formula is:
P = 8.25x - 2900
The formula to calculate the profit (P) from selling x compact discs is:
P = (10x) - (1.75x + 2900)