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

Algebra ->  Finance -> 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      Log On


   

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) About Me  (Show Source):
You can put this solution on YOUR website!
Profit = revenue - cost. For you, the revenue function is R%28t%29=9.95t, where t is the number of thermometers sold. The cost function is C%28t%29=1250+%2B+3.25t, since 1250 is the one-time cost and you need to pay 3.25 for each thermometer. We'll subtract these: 9.95t-%281250%2B3.25t%29=9.95t-1250-3.25t=6.70t-1250. Thus, your profit function is P%28t%29=6.70t-1250.

To find the profit or loss for 250 thermometers, we plug in 250: P%28250%29=6.70%2A250-1250=1675-1250=425. There is a profit of $425 when 250 thermometers are sold.