A company is planning to manufacture a certain product. The fixed costs will be $474778 and it will cost $293 to produce each product. Each will be sold for $820. Find a linear function for the profit, P , in terms of units sold, x .
Set up the cost function C(x):
C(x) = Cost per product * x + Fixed Costs
C(x) = 293x + 474778
Set up the Revenue function R(x):
R(x) = Sale Price * x
R(x) = 820x
Set up the Profit Function P(x):
P(x) = Revenue - Cost
P(x) = R(x) - C(x)
P(x) = 820x - (293x + 474778)
P(x) = 820x - 293x - 474778
P(x) = 527x - 474778
Set up the cost function C(x):
C(x) = Cost per product * x + Fixed Costs
C(x) = 293x + 474778
Set up the Revenue function R(x):
R(x) = Sale Price * x
R(x) = 820x
Set up the Profit Function P(x):
P(x) = Revenue - Cost
P(x) = R(x) - C(x)
P(x) = 820x - (293x + 474778)
P(x) = 820x - 293x - 474778
P(x) = 527x - 474778