SOLUTION: Question one
The fixed costs of a company is Kshs 35,000 and the variable cost per unit is Kshs 500. The revenue function for sale of x units is given by . Find;
i) Profit f
Algebra ->
Matrices-and-determiminant
-> SOLUTION: Question one
The fixed costs of a company is Kshs 35,000 and the variable cost per unit is Kshs 500. The revenue function for sale of x units is given by . Find;
i) Profit f
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Question 1142279: Question one
The fixed costs of a company is Kshs 35,000 and the variable cost per unit is Kshs 500. The revenue function for sale of x units is given by . Find;
i) Profit function
ii) Break even values
iii) The values of x which result in a loss
In this post, you missed (lost) the key part: the expression for the revenue function.
Without it, the problem CAN NOT be solved.
---------- Comment from student : the revenue function by R(x)=5000x - 100x2.
----------
My response : OK. Then
(i) The profit function is
P(x) = R(x) - C(x) = (5000x - 100x^2) - (35000 + 500x)
(ii) Break even value.
To find it, solve this quadratic equation
P(x) = R(x) - C(x) = 0, which is the same as
(5000x - 100x^2) - (35000 + 500x) = 0.
Simplify the left side and write the equation in the standard form;
then apply the quadratic formula //or factoring, if it works// to find the root.
The root of the quadratic equation will be your answer.
(iii) I am attaching the plot of the quadratic function for profit P(x)
Plot of the profit function P(x) = (5000x - 100x^2) - (35000 + 500x).
In the plot, you see the roots. The profit is positive where the parabola is over the x-axis.
The profit is negative (= loss) where the parabola is BELOW the x-axis.
This plot is your GUIDE to complete the solution on YOUR OWN.
