Question

A cleaning company charges $140 for each office it cleans. The fixed monthly cost of $450 for the company includes telephone service and the depreciation on cleaning equipment and a van. The variable cost is $50 per office and includes labor, gasoline, and cleaning supplies. (a) Write a linear cost function representing the cost Cx (in $) to clean x offices per month. (b) Write a linear revenue function representing the revenue Rx (in $) for cleaning x offices per month. (c) Determine the number of offices to be cleaned per month for the company to break even. (d) If 25 offices are cleaned, will the company make money or lose money

Answer 1

a) C(x)=50x+450

b) R(x) = 140x

c) Company will have to clean 5 offices to break even

d) Company will make money, $1,800

Explanation:

a) C(x) = 50x+450

b) R(x)=140x

c) to break even, C(x) = R(x)

140x=50x+450

90x=450

x=5

Company will have to clean 5 offices to break even

d) R(x)= 140*25 = 3,500

C (x)=50*25+450 = 1,700

total profit will be 3500-1700 = 1,800

so company will make money