SOLUTION: A company makes pens. They sell each pen for $
5
.
Their revenue is represented by R = 5 x .
The cost to make the pens is $
1
each with a one time start up cost of $
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Question 1165912: A company makes pens. They sell each pen for $
5
.
Their revenue is represented by R = 5 x .
The cost to make the pens is $
1
each with a one time start up cost of $
4000
.
Their cost is represented by C = 1 x + 4000 .
a) Find the profit, P, (P = R - C) when the company sells 1000 pens.
Answer by ikleyn(52803) (Show Source): You can put this solution on YOUR website!
.
They just explained everything to you in the post. You only need to combine
their explanations in one simple formula, and then calculate
profit P = R - C = 5x - (x + 4000) = 5*1000 - (1000+4000) = 5000 - 5000 = 0.
The profit is 0 (zero) at the given conditions.
So, x = 1000 is the break point in this problem.
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