Question 640213: A machine can produce 12 clay figures per hour. It costs $750 to setup the machine and $6 per hour to run the machine. Each clay figure requires $2 of material (clay) to produce. If each clay figure will sell for $10, express the revunue, cost and profit in producing x clay figures as a function of time.
Answer by benni1013(206)   (Show Source):
You can put this solution on YOUR website! What we know:
$750 to setup machine. $6/hr to run machine. $2/unit materials. Selling at $10/unit. The machine produces 12 clay figures per hour.
How to get from what we know to what we want to know:
This is a very business related problem. First, define your variable and fixed costs. The starting of the machine is a fixed cost. The cost of the materials, m, is variable per unit. The cost to run the machine, l, is variable. The revenue function is only the selling price times the number of units sold. The profit function is the revenue function minus the cost function.
Solution
Cost function: 6l+2m+750 per hour
Revenue function: 10x per unit sold
Profit function: T(x)=10x-(6l+2m+750)
Break-Even function 0=10x-(6l+2m+750)*
*Just a bonus.
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