The cost to produce one compact disc is $1.75 plus a one-time fixed cost of $2500. 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 profit P from selling x compact discs can be calculated using the formula:
P = (Revenue per CD * Number of CDs) - (Cost per CD * Number of CDs) - Fixed Cost
In this case, the revenue per CD is $10, the cost per CD is $1.75, and the fixed cost is $2500.
Therefore, the formula to calculate the profit is:
P = ($10 * x) - ($1.75 * x) - $2500
Simplifying further:
P = $10x - $1.75x - $2500
Hence, the formula that calculates the profit P from selling x compact discs is P = $8.25x - $2500.