SOLUTION: A machine can produce 12 clay figures per hour. It costs $750 to setup the machine and $6 per hour to run the machine. Each clay figure requires $2 of material (clay) to produce. I

Question 640213: A machine can produce 12 clay figures per hour. It costs $750 to setup the machine and $6 per hour to run the machine. Each clay figure requires $2 of material (clay) to produce. If each clay figure will sell for $10, express the revunue, cost and profit in producing x clay figures as a function of time.

Answer by benni1013(206) (Show Source): You can put this solution on YOUR website!
What we know:
$750 to setup machine. $6/hr to run machine. $2/unit materials. Selling at $10/unit. The machine produces 12 clay figures per hour.

How to get from what we know to what we want to know:
This is a very business related problem. First, define your variable and fixed costs. The starting of the machine is a fixed cost. The cost of the materials, m, is variable per unit. The cost to run the machine, l, is variable. The revenue function is only the selling price times the number of units sold. The profit function is the revenue function minus the cost function.
Solution
Cost function: 6l+2m+750 per hour
Revenue function: 10x per unit sold
Profit function: T(x)=10x-(6l+2m+750)
Break-Even function 0=10x-(6l+2m+750)*
*Just a bonus.

RELATED QUESTIONS
a machine can produce three more than twice the production per hour of the old machine.... (answered by jorel1380)

A new machine can produce three more than twice the production per hour of the old... (answered by Theo)

Machine A can produce 30 steering wheels per hour at a cost of $8 per hour. Machine B can (answered by Fombitz)

A motor cycle helmet forming machine can make 100 helmets in a day. If the first machine... (answered by richwmiller)

A clerk can add 40 columns of figures an hour by using an adding machine and 20 columns... (answered by ankor@dixie-net.com)

Dear tutors, Please explain to me how to solve this problem. A stamping... (answered by mukhopadhyay)

How would u set up a equation to find the answer to this........a sausage machine... (answered by josgarithmetic)

A machine weaves 2 2/3 meters of fabric in the first hour of operation. All the rest of (answered by stanbon)

A machine can produce either nuts or bolts, but not both at the same time. The machine... (answered by Paul)