SOLUTION: . A company produces and sells shirts. The fixed costs are $7000 and the variable costs are $5 per shirt.
a) Shirts are sold for $12 each. Find the cost and revenue as functio
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-> SOLUTION: . A company produces and sells shirts. The fixed costs are $7000 and the variable costs are $5 per shirt.
a) Shirts are sold for $12 each. Find the cost and revenue as functio
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Question 904244: . A company produces and sells shirts. The fixed costs are $7000 and the variable costs are $5 per shirt.
a) Shirts are sold for $12 each. Find the cost and revenue as functions of the quantity of shirts, q.
b) The company is considering changing the selling price of the shirts. Demand is
q = 2000 – 40p, where p is the price of the shirt in dollars and q is the number of shirts. What quantity is sold at the current price of $12? What profit is realized at this price?
c) Use the demand equation to write cost and revenue as functions of price, p. Then write profit as a function of price, p. (hint: do not use $12, use just p)
d) Graph profit against price. Find the price that maximizes profits. What is this profit?
