SOLUTION: an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.

Question 789354: an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
an item cost $3 to make , sell for $6 . if profits of $5000 are made when 2000 items are produced and sold, find the cost equation.
-----------
Profit = Revenue - TotalCost
Total Cost = Manufacturing Expense + Overhead
-----
5000 = 6*2000 - 3*2000 - overhead
5000 = 12000 - 6000 - overhead
5000 = 6000 - overhead
overhead = $1000
--------------
Note: Not sure what you meant by "cost equation".
I assumed you meant cost = manufacturing expense + overhead
============
Cheers
Stan H.
RELATED QUESTIONS
Assume that the linear cost and revenue models apply. An item costs $4 to make. If fixed... (answered by ankor@dixie-net.com)

In the cost function below, C(x) is the cost of producing x itemsl Find the average cost (answered by stanbon,flyoung)

Cost, Revenue & Profit For these problems, x will represent the number of items and y... (answered by CPhill)

For these problems, x will represent the number of items and y will represent the money. (answered by stanbon,MathTherapy)

The Scenario: You want to start your own 3-D printing and manufacturing business. Use... (answered by ikleyn)

The cost (p) in ghana cedis, of producing n items is given by the formula p=3/4n+180... (answered by josgarithmetic)

Business and finance. In planning for a new item, a manufacturer assumes that the number... (answered by tutorcecilia)

Business and finance. In planning for a new item, a manufacturer assumes that the number (answered by stanbon)

Business and finance. In planning for a new item, a manufacturer assumes that the... (answered by stanbon)