Question

A company is planning to manufacture a certain product. The fixed costs will be $428136 and it will

cost $126 to produce each product. Each will be sold for $639.
Find a linear function for the profit, P, in terms of units sold x

Answer 1

Explanation:

The profit function for a company is calculated as the difference between the revenue and the total cost. The revenue is calculated by multiplying the number of units sold by the price per unit. The total cost is calculated by adding the fixed costs to the variable costs (calculated by multiplying the number of units produced by the cost per unit).

In this case, we can calculate the profit function P(x) as follows:

P(x) = Revenue - Total Cost P(x) = (Price per unit * Units sold) - (Fixed Costs + Variable Costs) P(x) = (639x) - (428136 + 126x) P(x) = 639x - 428136 - 126x P(x) = 513x - 428136

So for this company, a linear function for their profit in terms of units sold x would be P(x) = 513x - 428136.