SOLUTION: Finicky-Cat Gourmet Pet Food makes organic cat food and sells them in 2 kg bags. The company has annual fixed costs of $150,000 and variable costs of $4 per bag. Finicky-Cat sells
Algebra ->
Systems-of-equations
-> SOLUTION: Finicky-Cat Gourmet Pet Food makes organic cat food and sells them in 2 kg bags. The company has annual fixed costs of $150,000 and variable costs of $4 per bag. Finicky-Cat sells
Log On
Question 1165323: Finicky-Cat Gourmet Pet Food makes organic cat food and sells them in 2 kg bags. The company has annual fixed costs of $150,000 and variable costs of $4 per bag. Finicky-Cat sells each bag for $10. Production capacity is 50,000 bags per year.
A.) Find the revenue and cost equation. Answer by solver91311(24713) (Show Source):
Let represent the number of items actually produced. We know that , but that fact is irrelevant at this point because we are not dealing with a profit function. Let where represent the quantity sold. Then:
If you make the utterly irrational assumption that the factory produces at full capacity and the company sells every single bag produced, then:
John
My calculator said it, I believe it, that settles it
