SOLUTION: The cost of manufacturing lawnmowers is $12,320 in overhead costs and $396 per lawnmower in production costs. Marketing studies show that the best selling price is $452 per lawnmow

Question 1172416: The cost of manufacturing lawnmowers is $12,320 in overhead costs and $396 per lawnmower in production costs. Marketing studies show that the best selling price is $452 per lawnmower. Find the cost function, C(x), the revenue function, R(x), and the profit function, P(x), that model this scenario for x lawnmowers manufactured and sold.
Can you help me find these? Thanks for helping me out!
1. What's the cost function?
2. C(x)?
3. What's the revenue function?
4. R(x)?
5. What's the profit function?
6. P(x)?
7. And the model this scenario for x lawnmowers manufactured and sold?
Found 2 solutions by Solver92311, ikleyn:
Answer by Solver92311(821) (Show Source): You can put this solution on YOUR website!

The cost function is the fixed cost added to the product of the variable cost and the number of items manufactured. In other words, the overhead plus x times the production cost.

The revenue function is the sale price times the number sold.

The profit function is the revenue function minus the cost function. If the number manufactured is different than the number sold, then the profit function is a two-variable function. But since your problem statement implies that the number manufactured is equal to the number sold, it is a single-variable function in x.

John

My calculator said it, I believe it, that settles it

From
I > Ø

Answer by ikleyn(52776) (Show Source): You can put this solution on YOUR website!
.

These terms, "cost", "revenue" and "profit" are very first conceptions that a Finance student should learn and use

from the very first days of study this discipline.

They are like a multiplication table for the 1-st and 2nd grade students (as well as for all other older people living on the Earth).

Do you come to this forum to ask about multiplication table ?

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