SOLUTION: I have a word problem here at least thats what I think this is and I have no clue how to calculate any help would be appreciated After leaving a fulfilling career is a math te

Question 287918: I have a word problem here at least thats what I think this is and I have no clue how to calculate any help would be appreciated

After leaving a fulfilling career is a math teacher, Phil decides to venture out into the world of DVD sales. The cost of producing x DVD�s is given by the function C(x) = 1.3x + 275. The DVD�s can be sold on E-bay for $10 each.
(a) What are the fixed costs?

(b) Find the revenue and profit functions.
(c) Find the break-even point.
(d) If Phil manages to sell 500 DVD�s per month, what will his yearly profit be?

Eric
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
The cost of producing x DVD�s is given by the function C(x) = 1.3x + 275.
The DVD�s can be sold on E-bay for $10 each.
:
(a) What are the fixed costs?
The fixed cost is the value which is unaffected by x, therefore
fixed cost = 275
:
(b) Find the revenue and profit functions.
Revenue is the number of items sold times the price paid for each item;
R = 10x
Profit is the revenue - the cost
P = 10x - (1.3x + 275).
:
(c) Find the break-even point.
Break even is when the Revenue = the cost
10x = 1.3x + 275
10x - 1.3x = 275
8.7x = 275
x =
x ~ 32 items sold for break-even
:
(d) If Phil manages to sell 500 DVD�s per month, what will his yearly profit be?
Replace x with 500 in the profit equation
P = 10(500) - (1.3(500) + 275)
P = 5000 - 650 - 275, removing the bracket changes the sign
P = 5000 - 925
P = $4,075 profit in one month
therefore
12 * 4075 = $48,900 in 1 year

RELATED QUESTIONS
You have borrowed $200000 at 7% p.a taken over 25 years a)How much is the standard... (answered by xcentaur)

I cannot seem to figure out how this problem is worked. Any help is appreciated. I Know... (answered by Alan3354,galactus)

I have no clue how to start off with this problem. Any help would be great. Dish... (answered by josgarithmetic,greenestamps)

They gave me this word problem: I'm thinking of a number. The square of this number is... (answered by Edwin McCravy,richwmiller)

Hello, Could you please help me with this problem about integers? I have no clue on how... (answered by josmiceli)

Okay this is a really long problem that my math teacher gave me :-( and i'm stuck.... (answered by venugopalramana)

what would i do if i had (1/2) with a -4 as a exponent and i have no clue how to do... (answered by Earlsdon)

I have no clue how to solve this problem, please help! lXl+9=-2 i think it is X=11 but... (answered by stanbon)

I have an extra credit question on my homework that I have no clue how to solve. I just... (answered by Gersid)