Question 1036842
p(x) = r-(65x+5400)
Revenue in this case is the total pieces sold and is calculated by multiplying x times the selling price.
Cost is represented by variable cost 65 times number of pieces made x plus fixed expenses of 5400
Why is variable cost per unit? Because v.c. is made up of labor per unit, raw material per unit, machine time per unit
What is fixed cost? Costs that don't go away if your production volumes go down. In fact, if you stop producing completely you will still have a lot of the fixed costs like rent and insurance.