Suppose a company's revenue R (in dollars) from the sale of x units of its product is given by R = 320x. Suppose further that the total costs C (in dollars) of producing those x units is given by C = 70x + 20,000.

a. If profit is revenue minus cost, find an expression for the profit from the production and sale of x units.

b. Find the profit received if 4000 units are sold.

Question

Business

Trevin Bailey

29 September, 04:47

Suppose a company's revenue R (in dollars) from the sale of x units of its product is given by R = 320x. Suppose further that the total costs C (in dollars) of producing those x units is given by C = 70x + 20,000.

a. If profit is revenue minus cost, find an expression for the profit from the production and sale of x units.

b. Find the profit received if 4000 units are sold.

+2

Answers (1)

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Zackary Powell · Answer 1

a. The expression for the profit from the production and sale of x units:

Profit (P) = 250x - 20,000

b. If 4000 units are sold, Profit is $980,000

Explanation:

The company's revenue R (in dollars) from the sale of x units of its product is given by R = 320x and the total costs C (in dollars) of producing those x units is given by C = 70x + 20,000.

The expression for the profit from the production and sale of x units:

Profit (P) = Revenue - Cost = 320x - (70x + 20,000) = 250x - 20,000

If 4,000 units are sold, x = 4,000

Profit = 250 x 4,000 - 20,000 = $980,000