Question 106430: The CALC Company makes basic scientific calculators. Each calculator costs $2.25 to produce. The fixed costs of production are $10,500 per month. These calculators sell for $10.75 each. If the company produces and sells 550,000 calculators in February, find the profit or loss for the company for the month of February.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The CALC Company makes basic scientific calculators. Each calculator costs $2.25 to produce. The fixed costs of production are $10,500 per month. These calculators sell for $10.75 each. If the company produces and sells 550,000 calculators in February, find the profit or loss for the company for the month of February.
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Let "x" be the number of calculators produced in a month.
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Cost function: C(x) = 10,500+2.25x
Income function: I(x) = 10.75x
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February DATA:
C(550,000) = 10500+2.25(550000) = 1,248,000
I(550,000) = 10.75(550000) = $5,912,500
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Profit function: P(x) = I(x)-C(x)
P(550,000) = 5912500-1248000= $4,664,500
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Cheers,
Stan H.
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