Question

a company manufactures and sells novelty Mugs. the manufacturing cost consist of a fixed cost of R8000 and a variable cost of R15 rand per mug. the mugs are sold at R35 each. assume a linear profit function. determine the profit function

Answer 1

ok so

8000=cost
profit-8000
then
another cost is 15rand per mug
but profit of 35 rand
35-15=20
profit of 20rand per mug

profit=R20m-8000
where m=number of mugs sold
(R20 means 20 rand)


f(m)=R20m-8000