A manufacturer has a monthly fixed cost of $100,000 and a production cost of $14 for each unit produ

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A manufacturer has a monthly fixed cost of $100,000 and a production cost of $14 for each unit produced. The product sells for $20/unit.

Let u be the number of units. We have a cost function C(u) as:
C(u) = Variable cost * u + Fixed Cost
C(u) = 14u + 100000

We have a revenue function R(u) with u units as:
R(u) = Sale Price * u
R(u) = 20u

We have a profit function P(u) with u units as:
Profit = Revenue - Cost
P(u) = R(u) - C(u)
P(u) = 20u - (14u + 100000)
P(u) = 20u - 14u - 100000
P(u) = 6u - 1000000