SOLUTION: A company produces a product which it sells for $55 per unit. Each unit costs the firm $23 in variable expenses, and fixed costs on an annual basis are $400,000. If x equals the nu

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Question 1163382: A company produces a product which it sells for $55 per unit. Each unit costs the firm $23 in variable expenses, and fixed costs on an annual basis are $400,000. If x equals the number of units produced and sold during the year:
a) Formulate the linear total cost function
b) Formulate the linear total revenue function
c) Formulate the linear profit function
d) What does annual profit equal if 10,000 units are produced and sold during the year?
e) What level of output is required in order to earn zero profit?
Answer by solver91311(24713) About Me  (Show Source):
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The revenue function is the sale price per unit times the number of units, where is the unit price.

The cost function is where is the variable cost per unit, and is the total fixed cost.

The profit function is the revenue function minus the cost function.

The profit for 10,000 units is

Zero profit is obtained when


John

My calculator said it, I believe it, that settles it