SOLUTION: Use the following information to determine the equation for profit from selling 𝑥 items. Price = $9.00 per unit; Fixed cost = $24,000; Variable cost = $5.92 per unit

Algebra ->  Graphs -> SOLUTION: Use the following information to determine the equation for profit from selling 𝑥 items. Price = $9.00 per unit; Fixed cost = $24,000; Variable cost = $5.92 per unit      Log On


   

Question 1011857: Use the following information to determine the equation for profit from selling 𝑥 items.
Price = $9.00 per unit; Fixed cost = $24,000; Variable cost = $5.92 per unit
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
x = number of items made and sold
R = revenue
C = cost
P = profit (equal to R - C)

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Cost:

Total cost = (variable cost)*(number of units) + (fixed cost)
C = 5.92x + 24000

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Revenue:

Total Revenue = (Price per unit)*(number of units sold)
R = 9x

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Profit

Profit = Revenue - Cost
P = R - C
P = 9x - (5.92x + 24000)
P = 9x - 5.92x - 24000
P = 3.08x - 24000


So the profit equation is P+=+3.08x+-+24000 where x is the number of items made and sold, P is the profit in dollars.