Question

A manufacturer has a monthly fixed cost of $750 and a production cost of $15 for each item x that is produced. The product sells for $37 per item.

Write the equation of the total cost function, C(x), in terms of x.
Write the equation of the total revenue function, R(x), in terms of x.
Write the equation of the profit function, P(x), in terms of x. Simplify P(x) completely.

Answer 1

The cost function is C(x) = 14x + 100000,

the revenue function is R(x) = 20x,

the profit function is P(x) = R(x) − C(x) = 20x − 14x − 100000 = 6x − 100000.

Explanation: