SOLUTION: A manufacturer sells a product for 210 per unit. The total cost consists of fixed overhead 75000 plus a marginal cost of 160. Write the revenue function.
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Question 1183174: A manufacturer sells a product for 210 per unit. The total cost consists of fixed overhead 75000 plus a marginal cost of 160. Write the revenue function.
Found 2 solutions by ikleyn, Solver92311:
Answer by ikleyn(52788) (Show Source): You can put this solution on YOUR website!
.
The revenue function is the selling price times the number of sold items.
The rest of the post is IRRELEVANT to the problem's question.
Answer by Solver92311(821) (Show Source): You can put this solution on YOUR website!
Marginal cost is the derivative of the Cost function, but since you are asking for the revenue function, the cost has no bearing. Revenue is simply the price per unit times the quantity sold.
\ =\ 210q)
given the unit price of 210.
On the other hand, if what you really wanted was a Profit function, then you need to determine the cost function.
\ =\ 160q\ +\ C)
And the constant in this case is the fixed costs of 75,000,
So
\ =\ 160q\ +\ 75000)
Profit is then the difference between revenue and cost:
\ =\ R(q)\ -\ C(q)\ =\ 210q\ -\ (160q\,+\,75000)\ =\ 50q\ -\ 75000)
Extra credit: How many units must the company make and sell in order to not lose money?
John
My calculator said it, I believe it, that settles it
From
I > Ø
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