SOLUTION: I have a word problem here at least thats what I think this is and I have no clue how to calculate any help would be appreciated
After leaving a fulfilling career is a math te
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After leaving a fulfilling career is a math te
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Question 287918: I have a word problem here at least thats what I think this is and I have no clue how to calculate any help would be appreciated
After leaving a fulfilling career is a math teacher, Phil decides to venture out into the world of DVD sales. The cost of producing x DVD’s is given by the function C(x) = 1.3x + 275. The DVD’s can be sold on E-bay for $10 each.
(a) What are the fixed costs?
(b) Find the revenue and profit functions.
(c) Find the break-even point.
(d) If Phil manages to sell 500 DVD’s per month, what will his yearly profit be?
You can put this solution on YOUR website! The cost of producing x DVD’s is given by the function C(x) = 1.3x + 275.
The DVD’s can be sold on E-bay for $10 each.
:
(a) What are the fixed costs?
The fixed cost is the value which is unaffected by x, therefore
fixed cost = 275
:
(b) Find the revenue and profit functions.
Revenue is the number of items sold times the price paid for each item;
R = 10x
Profit is the revenue - the cost
P = 10x - (1.3x + 275).
:
(c) Find the break-even point.
Break even is when the Revenue = the cost
10x = 1.3x + 275
10x - 1.3x = 275
8.7x = 275
x =
x ~ 32 items sold for break-even
:
(d) If Phil manages to sell 500 DVD’s per month, what will his yearly profit be?
Replace x with 500 in the profit equation
P = 10(500) - (1.3(500) + 275)
P = 5000 - 650 - 275, removing the bracket changes the sign
P = 5000 - 925
P = $4,075 profit in one month
therefore
12 * 4075 = $48,900 in 1 year
