SOLUTION: . The Luke Warm company has fixed costs for a week of $1,250 and the cost to make one thermometer is $3.25. If the revenue from one thermometer is $9.95, fine the profit functio

Question 465711: . The Luke Warm company has fixed costs for a week of $1,250 and the cost to make one thermometer is $3.25. If the revenue from one thermometer is $9.95, fine the profit function for the week and determine the profit or loss if 250 thermometers are sold.
Answer by kingme18(98) (Show Source): You can put this solution on YOUR website!
Profit = revenue - cost. For you, the revenue function is , where t is the number of thermometers sold. The cost function is , since 1250 is the one-time cost and you need to pay 3.25 for each thermometer. We'll subtract these: . Thus, your profit function is .

To find the profit or loss for 250 thermometers, we plug in 250: . There is a profit of $425 when 250 thermometers are sold.
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